Salient Features of FDI in Russia
The foundation of Russia's industry was laid by Peter the Great, who invited western partners to transfer the required technology for setting up the first manufacturing units in Petersburg, Novgorod and Yaroslavl. The Romanov tsars who succeeded him continued these efforts, convinced that cultural, financial and know-how exchange with the other European nations could only benefit Russia. During 1895–1914, inflows of foreign capital into Russia were as high as 55–60 per cent of domestic investment, 1 whereas today FDI equals only 1–2 per cent of domestic investment. 2 The main investing nations were Germany (28 per cent of FDI in 1913), France (19 per cent), the United Kingdom (17 per cent) and Belgium (11 per cent) (Figure 9.1). In those days companies from western Europe predominated;
Figure 9.1 Share of FDI by main investing country, Russia, 1913, 1996
Source: Boguslavski, 1999; Goskomstat.