Abstract

Companies with foreign capital participation are an important part of domestic economy. They ensure the inflow of investments, facilitate access to new technologies, promote the exchange of innovative and managerial experience, and increase industries competitiveness. Under modern conditions, there are many problems that hinder effective functioning of the companies with foreign capital participation in Russia. Geopolitical instability and the risk of changes of the economic situation are among the most significant problems. In addition, bureaucratic obstacles, corruption, and imperfect legislation also create difficulties for foreign investors. All these actualize the issue and classify it as the most important for scientific study in the context of modern Russian economy development and its integration into the world economic system. The purpose of the study is to analyze the situation with the development of companies with foreign capital participation and provide recommendations to ensure their effective functioning in the domestic market. The results are: negative dynamics of decrease in the volume of foreign investments in the Russian economy and the number of companies with foreign participation in capital are established, current problems and factors affecting functioning of organizations with foreign participation in capital in Russia are assessed, the main risks faced by these companies when entering the Russian market, including geopolitical, bureaucratic, economic, technological, legislative and other risks are revealed, external and internal factors limiting the ability to contribute to sustainable development of organizations with foreign participation under the modern conditions of the Russian economy are identified, and recommendations are proposed to ensure the effectiveness of companies with foreign participation in capital in terms of designing development strategy, maintaining relations with stakeholders, ensuring professional development of personnel, and upgrading equipment and introducing innovations. All these will help foreign investors with cultural adaptation and understanding of the laws facilitate their entry into the Russian market, which in turn will improve the investment climate in the country and create favorable conditions for foreign investors in Russia.

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