UNCTAD rates Russia eighth-largest destination for planned FDI from multinational corporations in 2012–2014
Report notes RDIF as factor in boosting investment in Russia
Moscow, 12 July 2012 – The United Nations Conference on Trade and Development (UNCTAD) noted increasing investment in the Russian economy and the country’s growing appeal to global investors in its 2012 World Investment Report. The growth of foreign direct investment (FDI) in Russia is nearing record levels, according to the report.
The report noted the importance of the Russian Direct Investment Fund (RDIF) in increasing foreign direct investment to Russia.
“FDI from developing countries is…expected to rise further, aided by joint initiatives to support direct investments in some transition economies. For example, CIC, China’s main sovereign wealth fund, and the Russian Direct Investment Fund (RDIF) agreed to contribute $1 billion each to an RDIF-managed fund. The fund will make 70 per cent of its investments in the Russian Federation, Kazakhstan and Belarus,” the UNCTAD report notes.
Kirill Dmitriev, Chief Executive Officer of RDIF, said, “We are glad that this authoritative international organisation has noted Russia’s growing attractiveness to foreign investors. According to UNCTAD, in 2011 foreign direct investment into Russia rose 22% year-on-year and reached $53 billion. This is a record high volume of direct investment in the post-crisis period. It proves that despite global economic uncertainty, Russia is receiving increasing attention from major investors and will continue to do so. The UNCTAD survey shows that Russia is tied with Germany in eighth place among the top prospective destination economies for foreign direct investment from multinational corporations for 2012–2014.”
Mr. Dmitriev added that the services sector reported the fastest growth in investment globally in the past year. For the first time, services surpassed the manufacturing sector in terms of foreign direct investment. UNCTAD experts believe that Russia’s accession to the WTO will help further boost investments into the services sector.
“Membership in the WTO implies vast investment opportunities across services, manufacturing and finance,” Kirill Dmitriev said. “We expect our prospective partners to respond properly to the improving investment climate and increasing transparency of our economy. Last year, Russia moved up one place in the list of foreign direct investment destinations to ninth place. We believe this is just the beginning. RDIF will continue doing everything we can to attract new investors into the Russian economy.’’
The United Nations Conference on Trade and Development (UNCTAD)was established as one of the permanent intergovernmental platforms of the UN General Assembly in 1964. The body now acts as the UN coordinator on issues of sustainable development, trade, finance, technology, and investment. One of the key objectives of the Conference is to support integration of emerging and transition economies into the global economy. More information is available at http://unctad.org.
Russian Direct Investment Fund (RDIF), established in June 2011, is to be capitalized with $10 billion in Russian government funds to make equity investments that generate strong returns. In each investment it makes, RDIF is mandated to secure co-investment that as a minimum matches its commitment, thus acting as a catalyst for direct investment into the Russian economy. Kirill Dmitriev has been Chief Executive Officer of RDIF since the fund’s inception. Additional information is available at rdif.ru.