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Germany was Leading Investing Country in Russia in 2020

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BM.GE
04.06.21 21:30
1179
Russia ranked 11th among the most attractive countries for foreign direct investment in Europe, EY study says, however, due to the consequences of the pandemic, the number of investment projects in Russia in 2020 decreased to the level of 2014. Leader investor countries were Germany, China and the USA. 
 
"In 2020, foreign investors invested in 141 projects in the Russian Federation. Compared to 2019, the number of FDI in Russia has decreased by 26%," the study says, as reported by local media TASS. 
 
In the ranking of countries actively investing in the Russian economy, Germany took the first place, similar to 2019, although the number of FDI from this country decreased by 28% compared to 2019 and amounted to 26 projects. According to EY experts, half of German investments were directed to the agro-food sector, which indicates the growing attractiveness and profitability of this direction.

In 2020, the second place was shared by China and the United States, each country invested in 15 projects. The number of projects from China decreased by 32% compared to 2019, and from the USA - by 25%.
 
Above half of American companies, like German businesses, have invested in the agro-food sector. Despite the sanctions and a decrease in the number of projects by American companies, official statistics show an increase in investments from the United States. At the end of 2020, net FDI inflows amounted to US$ 402 million, which is 3.3 times higher than the average level over the previous five years, "the study says.

Italy moved up to third place from seventh in 2019, doubling the number of investment projects in Russia.
 
According to EY estimates, France dropped to fourth place in 2020, while in 2019 it ranked second in terms of FDI in Russia. In 2020, the inflow of FDI from France exceeded US$ 1.4 billion, that is, almost 17% of the total inflow of foreign investment in Russia.
 
Switzerland retained its position in fifth place. For the first time in the last ten years, India and Sweden entered the top 10 countries in terms of the amount of FDI in the Russian economy - with five projects. The rating of the most active investors in the Russian economy is closed by Finland, which, compared to 2019, has reduced the number of projects by 2.5 times and moved from fifth to ninth place, as well as Turkey and the United Kingdom, which are implementing four projects in Russia each.
 
The leader among foreign investors, as in previous years, is the agro-food sector. Among the reasons for the attractiveness of this sector are the import substitution policy and the food embargo that has been in effect since 2014. Germany and the United States invested the most in the agroindustry.
 
The second place in attracting foreign investment is occupied by the production of machinery and equipment. Here the leaders are Italy, Germany, the USA and China.
 
According to EY, Moscow and the Moscow Region are the regions most in demand among foreign investors. Most of the projects here belong to France, Germany and the USA. In St. Petersburg and the Leningrad Region, Germany is the main investor country in projects. The third place in the list at the end of 2020 was taken by Tatarstan, where China became the main investor.