Trends and prospects for further development of investment processes in Russia and its regions at the present stage

Abstract

The article attempts to assess the impact of investment processes on the development of the Russian economy at the present stage. The diversification of regions when it comes to economic growth rates is largely due to the dynamics of investment processes as well as the erratically characteristics of the investment climate. Investment-attractive regions, formed as an economic core, have all the prerequisites for further economic growth alongside attracting investment. The regions with the highest investment risk and low economic potential despite the support measures taken by the state, still remain at risk having a small amount of investment being attracted. To bridge the gap in investment processes between regions, the Government calls for paying thorough attention to the challenging aspects of each region and take an individual approach towards the formation of innovation and investment infrastructure in every region. The onset of the COVID-19 pandemic in 2020 led to an alteration in most forecasts alongside the conditions for investment activities and prospects for the development of investment processes. In the meantime, as far as the medium-term growth of the Russian economy is concerned, there are quite favorable conditions, regardless of the current economic sanctions and the consequences of the pandemic caused by the COVID-19 coronavirus infection. The key issue in terms of the investment area is the lack of readiness of most regions for large-scale investment projects and the low interest of private investors. This study shows the significance of a balanced development of investment processes, the necessity to provide targeted support to the least investment-attractive regions and the overall improvement of the investment climate. The core directions of investment processes and their impact on the economy are highlighted. The main problems alongside possible prospects for the development of investment processes in Russia taking into account the new realities are outlined. The improvement of the investment mechanism will contribute to the creation of competitive products, the development of production capacities and the increase of the country's economic potential amid coronavirus restrictions and in the post-pandemic period all in all.