According to international rankings, such as Doing Business and the Global Competitiveness Index, the investment climate in Russia has improved. Dmitry Medvedev mentioned this during a session of the Foreign Investment Advisory Council in Russia. Foreign companies continue to open new branches in our country. Earlier, we told you about a new plant Total had opened in Kaluga Oblast.
Leila Alnazarova, has all the details.
Foreign investors are interested and willing to invest. During a session of the Foreign Investment Advisory Council, Dmitry Medvedev said that some companies left the Russian market giving in to political pressure. Others, on the contrary, have become more willing to move their production facilities to Russia. They also encourage their suppliers from other countries to do business in Russia. And it's clear why: The Russian economy continues to grow despite the various restrictions.
Dmitry Medvedev: "We can see that many investors retain an interest in our country, which is natural because our economy continues to grow despite the various limitations. This includes not only the GDP growth but also a wide range of other economic indicators such as industrial output, freight turnover, fixed investment, and exports. Finally, inflation remains low enough to maintain macroeconomic stability".
The heads of 30 global companies attended the session of the Foreign Investment Council. They represent a variety of industries ranging from mineral production to utility infrastructure modernization.
According to Maxim Oreshkin, the Minister of Economic Development, as of today, a total of over 160 billion dollars has been invested in the Russian economy. He claims that despite the difficulties existing in the world, including trade wars and sanctions, the parties involved are able to find balance.
Maxim Oreshkin, Minister of Economic Development of Russia: "Foreign companies continue to invest in Russia, while Russia continues to treat them fairly. So long as they follow the rules, invest, create jobs, and contribute to the Russian GDP, they receive the same treatment as Russian companies".
According to Aleksandr Ivlev, the coordinator of the foreign members of the council, in the future, the members of the Foreign Investment Council plan to implement over 40 projects in Russia worth 47 billion rubles of investments.
Aleksandr Ivlev, Coordinator of Foreign Members of the Foreign Investment Advisory Council: "Total has opened a plant in one of the Russian regions where the company can produce oil. Mars is about to open a branch in Rostov. Henkel plans to begin production in Tosno. Cargill is building a plant in Volgograd Oblast. And many other FIAC members are making plans for the future".
In an interview to Izvestia, Kirill Dmitriev, the CEO of the Russian Direct Investment Fund, also pointed out the willingness of foreign investors to continue to invest in the Russian economy. According to him, about 20 companies and funds from China, South Korea, Qatar, and Saudi Arabia, are ready to invest 40 billion dollars over the next five to seven years. The main area of investment is the development of transportation infrastructure, including railways, highways, ports, and airports. In addition, 25% of the investments will go towards technological growth. Macroeconomic reforms and restructuring have created a more intuitive system which global companies can benefit from.
Global businesses that have made large investments in Russia are not planning to leave our market. Instead, those companies are restructuring their business filling new niches, and bringing new products to the market.
