During the first nine months of 2013, foreign direct investment (FDI) in the Russian economy increased by more than 51 percent compared to the same period of the previous year, according to the Federal State Statistics Service Rosstat.

Total FDI, including business ex­pansion investments, during which companies invest into businesses or products, between January and September of 2013 amounted to USD18.61 billion. Overall foreign in­vestment in Russia’s economy today has been estimated at USD132.385 billion. Cumulative foreign investment (including portfolio investment into stocks and bonds, FDI, and return­able investment) stands at approxi­mately USD379.3 billion.

During the corresponding period of the previous year, FDI increased at a lower rate of 4.6 percent. This year, investors brought to the Rus­sian economy approximately USD7.3 billion in equity, a figure reflecting a 15.2-percent increase from the previ­ous year. Another USD10 billion was in the form of loans, which is a drastic 110-percent increase compared to last year’s results. The category of other investments was USD1.2 bil­lion, a number that was nearly eight percent up from the corresponding statistic from last year. Leasing by foreign investors went down 63 per­cent compared to the same period of the previous year, amounting to USD1 million.

Rosstat’s numbers also show that portfolio investments decreased in 2013, with the decline estimated at 71.9 percent in relation to the re­sults of the previous year. As such, this year’s figure was USD441 mil­lion. During the first nine months of 2012, portfolio investment nearly

tripled. Both stocks and securities investments went down by 81.5 percent and 50.3 per­cent respectively. Yet, other forms of FDI saw a 12.6-percent increase during the first nine months of 2013 com­pared to a 17.2-percent loss during the same period of 2012. Invest­ments in short term loans (up to 180 days) shrank by one half, and investments in trade financing fell insignifi­cantly by approximately two percent. Long term financing in­vestments more than doubled. For­eign investors issued nearly USD76 billion in long term loans (for more than 180 days) to Russian customers this year so far.

Loan repayment amounts during the first nine months rose in 2013 by 9.2 percent compared to 2012, going up to USD90.5 billion.

Most of the foreign investments in Russia’s economy went into the man­ufacturing industry (metallurgy and petroleum production in general). Great Britain holds the leading posi­tion as a foreign investor. France, the United States, and the Netherlands follow suite in that order of impor­tance based on the amount invested.

Wholesale and retail is the second most popular field to attract foreign investment to Russia. In that seg­ment, Cyprus holds the leading po­sition, and Luxembourg takes the second spot. Switzerland largely invested into Russia’s banking and finance industry, making it the third most popular field for foreign invest­ment.

Russia invested nearly USD172 bil­lion abroad in the first nine months of 2013, marking a 49.2-percent growth over the same period of the previous year. Russia’s investments abroad by October 2012 amounted to USD 163 billion. Returns from Russian invest­ments abroad rose by more than 16 percent compared to the corre­sponding period of the previous year, amounting to USD117.6 billion. The British Virgin Islands (USD 61 billion) and Switzerland (USD 36 billion) are the two most attractive targets for Russian investors.