16.05 No Large Foreign Investment Decline in Russia Expected – Ministry

MOSCOW, May 16 (RIA Novosti) – The Russian Ministry of Economic Development does not expect to see a significant reduction in foreign investment in the country in figures for the first quarter of 2014, despite the deterioration in the geopolitical situation, Deputy Minister Sergei Belyakov told RIA Novosti.

“We do not have the statistics for the first quarter yet. The figures will approximately correspond to the last year’s results, maybe slightly lower,” Belyakov said on the sidelines of the annual meeting of the European Bank for Reconstruction and Development (EBRD).

He gave a brief account of possible industry-specific changes in foreign investment.

“I think that those industries where natural monopolies operate, and possibly the infrastructure sector may see a decline in investment. It’s hard to assess right now,” he said.

“Our task is to phase out public investment, because the budget resources are scarce and, in general, we are aiming to create a comfortable environment for all companies in all sectors. In the energy sector, for instance, we have foreign companies coming in, both American, and European,” he added.

According to the Russian Statistical Agency, the volume of foreign investments in the Russian economy grew by 10.1 percent in 2013 to reach $170.2 billion, including a rise in direct investment by 39.9 percent, to $26.1 billion. Accumulated foreign capital to the Russian economy in the given period grew by 6 percent to $384.1 billion.

According to the basic macroeconomic forecast for 2015-2017, the outflow of capital from Russia this year will total $100 billion.