Actuality August, 2007.

Raised by the end of June, 2007 foreign capital in the Russian economy reached $178 billion 516 million, having increased by 39,5% as compared to the same date of the last year. According to Federal Service of State Statistics, in raised foreign capital 45,2% of general volume belong to direct investments (against 48,1% of the last year), or $80,6 billion, 2,0% to portfolio investments (against 1,8% , or $3,6 billion). The other investments are of so-called «other» ones, marked of repayable basis (trade and other credits, etc). Their volume in the economy by the beginning of July made $94,3 billion, that is 52,8% of the whole volume against 50,1% of the last year.

The volume of foreign investments received in the I half of 2007 made $60,3 billion and grew in 2,6 times as compared to the same period of 2006. The volume of the repaid investments for the I half of this year made $25,2 billion, overvaluation of assets and obligations made $2,6 billion.
Raised in the I half of the year direct investments to Russia were multiplied as compared to the last year in 2,5 times and made $15,8 billion, portfolio investments — in 2,2 times and $1,1 billion, other ones — in 2,6 times and $43,4 billion. From among direct investments contributions to the authorized capital stocks made $6,7 billion, that is for 90,3% more than it was the last year, credits from the foreign joint owners of enterprises — $8,6 billion (growth in 6,8 times). Among «other» investments on the stake of trade credits there was a $4,8 billion (increase on 8,6%), other credits — a $38,3 billion (growth in 3,2 times). It is necessary to point out that «other» credits for the term of more than a half of year made $30,6 billion or more than a half of the whole received foreign bankroll, and their volume as compared to the I half of 2006 grew in 3,0 times. Short-term credits (for the term of less than half of year) were received in amount of $7,7 billion for the I half of year, that in 4,5 times more than for the same period of 2006.

Among branches of economy the largest volume of received foreign bankroll in the I half of 2006 was to the sector of wholesale and retail trade — $26,0 billion, manufacturing industry — $13,5 billion, mining — $12,7 billion The volume of investments to the sector of transport and communication made $3,6 billion, to the sector of the real estate — $2,1 billion, to the sector of financial activity — $1,2 billion.

In extractive industry almost all investments received in the I half of 2007 direct ones (their volume made $11,2 billion). Of about 85% of all investments ($10,7 billion) were received from Netherlands, $392 million — from Cyprus, $305 million — from the USA. Practically all investments in extractive industries were related to the production of oil and gas —$12,1 billion. Among manufacturing industries the most attractive for western investors are metallurgy and metal-working — $7,63 billion, from which almost the whole bankroll related to «other» investments — $7,46 billion. France ($2,94 billion investments) and Switzerland ($2,87 billion)were main investors. Considerable investments in the I half-year were also in food industry — $1 billion 514 million, from which $806 million were of direct investments, $22 million — of portfolios, $686 million — of «other» ones. The main countries-investors were Netherlands — $500 million, Luxemburg — $346 million and Cyprus — $285 million.

The building sector in the I half of the year received $909 million, approximately the half of investments was direct ones, and the second half was «other» ones. Cyprus was the main investor, which invested $697 million in Russia. Trade sector attracted in January–June practically only «other» investments, the volume of which made $25,3 billion from the general amount of bankroll of $26,0 billion Almost all investments were received from Great Britain — $14,0 billion, Luxemburg — $4,5 billion and from Cyprus — $3,9 billion.

Investments in communications service made in the I half of 2007 $2,0 billion, from which $1,58 billion was for «other» investments, $381 million — for portfolios and $40 million — for direct ones. Almost all investments, according to Federal Service of State Statistics, were received from Luxemburg — $1,3 billion
In the sector of financial activity the main investors were Austria ($361 million), Cyprus ($293 million) and Sweden ($144 million). $637 million all investments fell to the share of direct investments, $61 million of portfolio ones, $534 million of «other» ones. In the sector of operations with the real estate $821 million was of direct investments, $28 million — of portfolios and $1,22 billion — of «other» ones. The main investors were Cyprus ($1,25 billion), British Virgin islands ($122 million) and Great Britain ($121 million).

According to statistics, in the structure of raised by the end of June, 2007 foreign investments more than 29% ($51,9 billion) were for processing branches of industry, 26,8% ($47,8 billion) for wholesale and retail trade, 23,3% ($41,6 billion) — for mining. In the sector of operations with the real estate the raised investments made $13,2 billion (7,4% of general volume), in the sector of transport and communication —$13,1 billion (7,3%). The considerable foreign investments were made also in the sector of financial activity —$5,7 billion (3,2% of the whole volume) and building — $1,9 billion (1,1%).
Among main countries-investors which invest their money in Russian economy, traditional offshore areas still predominate. However, their account goes down gradually, giving way to the European countries with a favorable investment climate and the USA. In the structure of the investments raised in Russia Cyprus accounts 21,0% — $37,5 billion, Netherlands — 19,1% ($34,1 billion), Luxemburg — 16,3% ($29,2 billion), Great Britain — 10,8% ($19,2 billion), Germany — 5,7% ($10,1 billion), the USA — 4,2% ($7,4 billion), France — 3,7% ($6,6 billion), Switzerland — 3,3% (5,9 billion), British Virgin islands — 2,2% ($4,0 billion), Ireland — also 2,2% ($3,9 billion).

Federal Service of State Statistics of Russia observes that Russian investors also actively continue to invest money abroad. In the I half of the year Russia invested $36,8 billion abroad, that in 2,4 times more than the index for the same period in 2006. At the same time there were repaid investments of those made earlier to the amount of $25,9 billion (by 80,8% more than in 2006). Thus, almost all investments made abroad are short-term and quickly are got back to the country. Therefore Russian capital raised abroad remains small. By the end of June it made $25,92 billion, that is even smaller than in the I half of the year. Direct investments made $13,2 billion, portfolio – $1,4 billion, “other” ones – $11,3 billion.

In the structure of Russian capital raised abroad Cyprus accounted $8,1 billion, Netherlands – $6,7 billion, Austria – $1,48 billion, Great Britain – $1,478 billion, Luxemburg – $1,0 billion. Among investments made abroad in the I half-year, the largest ones were in the USA ($9,3 billion), in Cyprus ($6,5 billion), in Netherlands ($5,8 billion), Austria ($5,8 billion) and Germany ($3,0 billion).