Updated August 15, 2008

In 1H 2008 the volume of foreign investments in Russia’s economy totaled $46,5 billion, and this figure is 22,9% less as compared to the analogical period of the previous year, as the Federal State Statistics Service (FSSS) reported.

In 1H 2008 the direct foreign investments in Russia totaled $11 080 million, and it means that their volume fell by 30% as compared to the analogical period of the previous year. Moreover, contributions to the capital reached $7 033 million (the 4,6% growth), and loans from the foreign co-owners of enterprises totaled $3 530 million (the 59% drop), leasing – $66 million (the 40,2% growth), other direct investments – $451 million (the 5,6% drop).

In 1H 2008 the portfolio foreign investments in Russia reached $1 152 million and it is 4,4% more as compared to the level of the analogical period of 2007, including investments in stocks and shares – $948 million (the 12,8% drop).

Other investments in Russia totaled $34 298 million and it is 21% less as compared to the corresponding index of 1H 2007. In addition, the trade loans reached $7 468 million (the 55,3% growth), other loans totaled $25 819 million (the 32,6% drop), of which over a peiod of time less than 180 days – $2 817 million (the 63,6% drop), and over 180 days – $23 002 million (the 24,7% drop). Other components of investments reached $1 011 million or became quadrupled.

In 1H 2008 the majority of foreign investments was directed to the area of wholesale and retail trade, to the maintenance of vehicles, motorcycles, household appliances and individual supplies ($13,479 billion), including Great Britain that directed to this area $3,936 billion, Cyprus – $3,679 billion, Luxemburg – $1,503 billion.

In 1H 2008 the mining industry received $4 557 million. The Netherlands became the leader by investments in the area of fuel and energy resources’ extraction with $1,686 billion.

Expert comments
Olga Belenkaya, deputy head of Sovlink JSC analytical department

The drop of foreign investments’ volume is quite logical. Previous year scale IPOs were held: the Savings Bank, VTB Bank. In addition, Rosneft used huge loans to take part in the auctions of Yukos’s assets purchase. Nothing of that kind took place this year. Moreover, one shouldn’t forget about the world liquidity crisis, as a result of which both portfolio investments and loans have been reduced. According to the results of this year, we expect the double drop of the foreign capital inflow.