Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Russia Leads CEE in FDI

Commentators have been rubbishing Russia's foreign direct investment inflows and pouring scorn on President Dmitry Medvedev's efforts to attract investment, but according to UniCredit's quarterly report for Central and Eastern Europe, Russia is doing better than anyone else in New Europe at attracting foreign direct investment.

Russia had a good first quarter witih foreign investments almost reaching the pre-crisis level. State Statistics Service data published in May (the latest available) show total foreign investment reaching $44.3 billion in the first quarter, up 237 percent year on year. FDI was $3.89 billion, up 48 percent year on year, while portfolio investment reached $122 million, down 58 percent year on year.

Looking across Central and Eastern Europe, the total inflow of capital was up from 16.6 billion euros in 2009 to 72.3 billion in 2010. However, more than half of these inflows (48.2 billion euros) was portfolio investment, with Poland accounting for half by itself (20.2 billion euros) and Turkey another quarter (12.4 billion euros).

By comparison the inflow of FDI remains anemic, but Russia still stands out as the most popular destination for FDI, accounting for almost a quarter of the total FDI into the CEE region: having peaked at 76.3 billion euros in 2007, FDI flows in CEE last year reached 16.5 billion euros, of which about $9 billion was "real" FDI into Russia (fresh investment, not counting reinvested profits by foreign companies already working in Russia).

The views expressed in opinion pieces do not necessarily reflect the position of The Moscow Times.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more