Ernst & Young gives Russia’s investment appeal a passing grade
MOSCOW, 16 SEPTEMBER 2011 – Opportunities for increasing foreign investments in Russia are growing. This is the finding of a study done by Ernst & Young in May and June of this year involving the heads of over 200 European, North American and Asian companies. Nearly two thirds of the companies already do business in Russia.
In the opinion of foreign investors, the main factor in Russia’s investment appeal is the country’s growing domestic market, which is regarded as attractive by an impressive 75% of those surveyed and very attractive by 30%.
Investors’ main reasons for concern included insufficient legislative and administrative transparency and, for some of those surveyed, problems with long-term predictability.
Nonetheless, a high percentage (70%) are confident that Russia will have greater investment appeal for their companies in the next three years. Foreigners that have already invested in Russia are interested in increasing their investments. Business expansion is on the agenda for the heads of 66% of companies that have enterprises here.
In 2010, for the first time, over half of the world’s foreign direct investments went to fast-growing economies, says Alexander Ivlev, Managing Partner of Ernst & Young in Russia. “Investments in the Russian economy offer many advantages for foreign investors,” he believes. “The country is rich in raw materials and has a large domestic market as well as a highly educated and highly productive labor force.”
Specially for Ernst & Young’s study, opinions on various aspects of the investment climate in Russia were shared by Andrei Sharonov, Moscow Deputy Mayor; Maurice Dijols, President of Schlumberger in Russia; Ruben Vardanian, Chairman of the Board of Troika Dialog; Lou Naumovski, Vice President of Kinross Gold Corporation; Anatoly Karachinsky, President of IBS Group; Igor Ignatiev, Deputy Chairman of Shell in Russia; and others.
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