Accumulated inward FDI stock in Russia falls below outward stock at start of 2025, for first time in 8 years - Central Bank

MOSCOW. April 11 (Interfax) - The accumulated stock of Russia's outward direct investment declined by $29.8 billion in 2024 to $230.0 billion, while the stock of inward direct investment dropped by $63.3 billion to $216.0 billion, according to data published on the Central Bank of Russia's website.

As a result, as of January 1, 2025, the net position of accumulated outward investment over inward investment amounted to nearly $14 billion.

The net position of accumulated direct investment turned positive (when outward investment exceeds inward) in Q4 2024 - as of October 1, it was still negative (minus $0.8 billion).

This marks the first time in eight years that Russia's accumulated outward direct investment has exceeded inward investment.

Previously, from January 1, 2015 to October 1, 2016, the net position had been positive, but on January 1, 2017, it turned negative (with accumulated inward investment exceeding outward), amounting to $51.1 billion after being just minus $1.0 billion a quarter earlier.

The local peak in the excess of inward over outward investment over the past eight years was recorded on April 1, 2022 (minus $123.8 billion). By January 1, 2023, the negative net position had fallen 50% to minus $60.9 billion, and one year later, by January 1, 2024, it had dropped a further 66% to minus $19.5 billion.

The decline in accumulated inward investment in 2024 was mainly due to a $54.3 billion drop in foreign investors' equity participation in Russian companies and investment funds, down to $207.4 billion. Foreign investment in debt instruments also declined by $9.0 billion to $8.7 billion.

Russian equity investment abroad in foreign companies and funds fell less - by $33.5 billion to $213.5 billion in 2024, while investment in debt instruments, in contrast, increased by $3.7 billion to $16.5 billion.

The local ten-year peak in accumulated foreign investment in Russian companies and funds was recorded on July 1, 2022 - $550.4 billion (driven by the sharp strengthening of the ruble in H1 2022, which pushed the figure above the early-2022 peak of $472.9 billion). Over the next two and a half years, foreign investment declined by $343.0 billion or 63%.

The peak in Russia's accumulated investment in foreign companies and funds over this period was recorded on January 1, 2022 - $391.0 billion. Over the following three years, this investment declined by $177.5 billion or 45%.