23 May 2018 13:11

Net foreign direct investment in Russia falls 14.3% in 2017 following 5-fold growth in 2016

MOSCOW. May 23 (Interfax) - Net foreign direct investment (FDI) in Russia fell 14.3% in 2017 to $27.9 billion, after rising 4.7-fold in 2016 to $32.5 billion, the Central Bank of Russia (CBR) said.

This included $9.7 billion in newly issued shares, down from $18.5 billion in 2016.

Net incoming investment in the form of reinvestment of earnings fell 8.2% to $15.8 billion.

FDI via debt instruments grew $2.4 billion last year after falling $3.2 billion in 2016. The balance of inward investments between related parties was $2.6 billion in 2017, compared to outflow of $1.3 billion in 2016.

Direct investment from Russia into other countries rose 73.1% in 2017 to $38.6 billion, from $22.3 billion in 2016 and $22.1 billion in 2015. The growth was driven mostly by investment in newly issued shares, via which FDI by Russian residents abroad grew by $22.5 billion or 2.6-fold last year: this grew $8.7 billion in 2016 and $8.4 billion in 2015.

Breakdown of foreign direct investment in Russia by type ($ mln, balance of payments data):

Equity capital, except reinvestment Reinvestment of earnings Debt instruments Total
2007 27 395 22 266 6 213 55 874
2008 35 393 33 449 5 941 74 783
2009 7 727 15 434 13 422 36 583
2010 10 040 18 644 14 484 43 168
2011 11 885 21 273 21 926 55 084
2012 -32 23 542 27 078 50 588
2013 10 668 21 689 36 861 69 219
2014 1 421 21 678 -1 068 22 031
2015 -469 11 188 -3 866 6 853
2016 18 477 17 238 -3 176 32 539
2017 9 699 15 817 2 370 27 886

On a country-by-country basis, the bulk of FDI into Russia came from four offshore jurisdictions - Cyprus, the Bahamas, Bermuda and Singapore, followed by Germany, France, the United States and China.

Breakdown of foreign direct investment in Russia by country in 2015-2017, with change in 2017 ($ mln):

2015 2016 2017 change
Total by countries -469 18 477 9 699 -8 778
Cyprus -8 330 -7 347 2 989 10 337
Bahamas 2 491 1 681 2 204 522
Singapore 130 16 169 1 430 -14 739
Bermuda 1 829 1 575 1 214 -362
Germany 1 198 933 727 -206
France 739 709 717 8
United States 27 345 297 -48
China 440 186 282 96