Investments to the Economy of Russian Regions: Dynamics, Structure, Risks

Abstract

Background/Objectives: Within current paperwork we examined questions connected to investment attractiveness of Russia in period from 2000 year up till nowadays, we extruded the most attractive industries for international investors, and also the structure of investments and it’s changing during the researching time period. Methods/Statistical Analysis: Research demonstrated that lack of investment portfolio diversification in the context of countries-counterparts is a threat for Russia’s investment portfolio. Regional aspect was analyzed, we conducted structural analysis of investments in context of Russia’s regions, and it’s investment attractiveness was evaluated. Belgorod region was examined as a potential object of investment for foreign countries; we conducted monitoring of core regional industries with purpose of growth points determination. Findings: Establishment and development of institutional environment promotes regulation and strengthening of Russia’s international connections, and attraction of capital into economy. However, besides creation of specialized companies – coordinators of investment area, currently in RF it is necessary to achieve diversification of investments in relation to: types (concerning credits in foreign currency); sources of financing (countries-investors); to form a portfolio from more dissimilar types of investments in order to minimize risks; industries and etc. Applications/Improvements: Current approach will allow reducing risks of investing into Russia’s economy and will allow achieving an effective redistribution of investments.