FDI into Russia increased by 83% in 2013, Russia rises to 3rd in global rankings for the first time – UNCTAD
Moscow, January 29, 2014 - United Nations Conference on Trade and Development (UNCTAD) published a report Global Investment Trends Monitor, which states that over the past year foreign direct investment (FDI) into Russia reached a record $94 billion - 83% higher than in 2012. Russia is now ranked third globally in terms of FDI volumes, behind only the U.S. and China.
UNCTAD highlighted increased activity in the Russian M&A market as one key reason for the sharp growth in FDI into Russia. Moreover, the report pointed to further sustainable FDI growth, largely driven by the Russian Direct Investment Fund:
"FDI in the Russian Federation is expected to keep pace with its 2013 performance as the Russian Government's Direct Investment Fund – a US$10 billion fund to promote FDI in the country – has been very actively deployed in collaboration with foreign partners, for example funding a deal with Abu Dhabi’s Department of Finance to invest up to US$5 billion in Russian infrastructure." (Global Investment Trends Monitor № 15 , January 28, 2014).
In 2013 RDIF signed six long-term partnerships, which commits a total of over $8 billion of FDI from Abu Dhabi’s Department of Finance, Mubadala Development Company (UAE), Japan Bank for International Cooperation (Japan), Caisse Des Depots International (France), Fondo Strategico Italiano (Italy) and the Korea Investment Corporation (Republic of Korea). Over the past year RDIF also completed 8 transactions alongside international partners totaling over $2.6 billion.
Currently RDIF is conducting a fresh campaign to improve Russia's investment image and attract leading international investors. One of its key aims is to explain the competitive advantages and achievements of the Russian economy in recent years.
In 2013 Russia rose 20 places in the World Bank’s “Doing Business” ranking as the top performer among the BRICS countries and this month entered the top 50 countries for doing business according to Bloomberg, showing an increase of 13 positions.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund, said:
“Modern Russia is a fast growing economy, and this thesis is supported by the key business rankings. These latest findings build on a number of recent reports which point to the significant progress Russia is making in improving its business climate and strengthening its image among the international investment community."
Russian Direct Investment Fund (RDIF) was established in June 2011 to make equity co-investments primarily in Russia alongside reputable international financial and strategic investors. Based in Moscow, RDIF’s management company is a 100% subsidiary of Vnesheconombank. Further information at www.rdif.ru.
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 www.unctad.org
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