Support The Moscow Times!

Russian Foreign Direct Investment Dropped 40% in 2014

The weaker investment came as Western sanctions over Ukraine and sharp falls in the price of oil slowed Russian economic growth to 0.6 percent in 2014.

Overseas investment by Russian companies fell to $56 billion last year, a 40 percent decline from 2013, even as China led a wider boom in foreign direct investment from emerging economies, according to a report by the United Nations Conference on Trade and Development (UNCTAD) released Monday.

The figure means that Russia last year was the world's sixth-largest foreign direct investor, equal with France, according to UNCTAD. In 2013, Russia placed fourth, with its companies investing $95 billion overseas.

The weaker investment came as Western sanctions over Ukraine and sharp falls in the price of oil slowed Russian economic growth to 0.6 percent in 2014.

While Russia slipped down the rankings, foreign direct investment from China and Hong Kong boomed to $266 billion last year, an increase of 38 percent from the $193 billion recorded by UNCTAD in 2013.

Total foreign investment by companies in emerging economies rose by 30 percent to almost half a trillion dollars last year, making up 36 percent of global foreign direct investment, the report said. The bulk of this, $440 billion, came from developing Asia, UNCTAD said.

The United States remained the largest source of overseas investment last year, with its companies investing $337 billion, according to UNCTAD.

Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

As we approach the holiday season, please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world’s largest country.