Straight from the offshore

Foreign investment in the Russian economy come to pre-crisis levels

After a deep hibernation, and even outflow of foreign direct investment began to return to the country, it should be an assessment of the balance of payments made by the Central Bank. In the second quarter of this year, they amounted to $ 6.5 billion. This is more than in all of 2015 and compares with dosanktsionnymi indicators.

It FDI attached to the quality of economic growth, which was caused by high oil prices. Together with them to come to the advanced technology and management system. The main source of such investment were the EU countries, and after the imposition of sanctions, the ruble devaluation and the collapse of oil prices, non-residents’ activity in Russia decreased significantly, many plans are put off until better times, or implemented in other “harbors”. New projects with the participation of foreign capital appeared generally within secure and favorable conditions, such as special economic zones.

However, while that of foreign direct investment lies in the main return of Russian capital from offshore companies in the domestic jurisdiction, says head of the “Finance and Economics”, Institute of Contemporary Development Nikita Maslennikov. We started to work on the economy deofshorizatsii measures in Russia, says the expert, on the other hand, tightened Anti- offshore legislation around the world, in particular in 2018 will reach its full capacity of the automatic international exchange of tax information. The entire global economy is covered with “red flags.”

“To mode scalded cats do not resign ourselves to additional losses, business restructure assets that statistics record as foreign investment Toward 2018 this time-consuming in terms of legal procedure the process will take a mass character.” - Predicts Nikita Maslennikov.

But no doubt, and the revival of the actual foreign business activity. For the first time since the crisis began in the second quarter of this year recorded an increase of optimism regarding the European entrepreneurs working in Russia, showed the research of the Association of European Businesses, performed by GfK Rus.

“Foreign investors have noted the high potential and high volume of the Russian market, as well as in the whole of its positive development, despite the difficult economic situation of most European businessmen interviewed by AEB and the GfK, expected growth of its business in 2016 and in the long term.”, - Said, “RG” Deputy General Director of GfK Rus Marina Bezuglova.

From the end of this and next year Russia can count on a revival of foreign investment. As an investment area, it is starting to look more convincing than other developing countries, said Nikita Maslennikov. “It is really a new immersion in a global recession, because the whole of Asia is at a high risk of breaking debt bubbles, very clear what will be in China We do not have this risk, we have passed the peak of repayment of external corporate debt.” - Said the expert. According to the Central Bank, net capital outflows in the first half of the year, which is mainly formed due to repayment of foreign debts of the private sector fell to 10.5 billion dollars, which is almost 5 times compared to the same period of 2015.

Attentive to Russian investors from abroad and make more vague implications of the decision of Great Britain to leave the EU. Of course, it would give impetus to foreign investment easing or lifting of sanctions.

But already spheres free from restrictions, many are assigned to the privatization of valuable assets, a request for large-scale projects with the participation of foreign capital is growing, evident tendency towards inflation stabilization in the record-low range and lower interest rates, - says a lot to non-residents in favor work Russia. An important signal for them to become real measures for the transition to a new model of growth, reduce dependence on oil prices. And the actions of the government in this direction, they will be watching closely, said Maslennikov.

13 July 2016

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