International direct funding within the Russian actual sector has fallen by 57% – from US$497.7 billion to US$216 billion – for the reason that starting of Russia’s full-scale invasion of Ukraine. That is the bottom stage since 2009.
Supply: The Moscow Instances, citing knowledge from the Central Financial institution of Russia
Particulars: Within the first yr of the invasion, Russia misplaced US$138 billion in overseas funding. In 2023, the determine was one other US$80 billion, and final yr an extra US$63 billion was misplaced. In complete, Russia’s economic system misplaced US$281 billion in overseas capital between 2022 and 2024.
In rouble phrases, this quantities to RUB 24.7 trillion (about US$296 billion) – over half of Russia’s federal price range (RUB 41 trillion or US$492 billion) and practically equal to the overall annual revenue of all Russian firms (RUB 30.4 trillion or US$365 billion).
The Russian authorities had positioned its hopes on BRICS companions, however these expectations haven’t materialised. "This factors to the rising isolation of the Russian economic system," mentioned Janis Kluge, a analysis fellow on the German Institute for Worldwide and Safety Affairs.
Even China, regardless of its standing as a "strategic associate", has banned its firms from investing in Russian oil and fuel tasks, together with the Energy of Siberia 2 fuel pipeline, and has refused to construct automobile manufacturing crops in Russia.
Earlier than the struggle, over 70% of overseas funding got here from "unfriendly" international locations. These states had invested in key sectors reminiscent of extraction, trade, commerce, finance and science. Now, these investments have come to a halt.
Background:
- Shoppers of the Russian division of Citibank have begun receiving coupon funds that have been beforehand frozen on account of EU sanctions.
- The quantity of overseas funding in Russia continues to say no quickly and, as of October 2024, had fallen to its lowest stage in 15 years.
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