BOFIT Viikkokatsaus / BOFIT Weekly Review 2019/23

In recent years, FDI inflows have overwhelmingly focused on the financial sector, the energy sector (basically oil & gas production) and manufacturing. The amounts of FDI inflows to the oil & gas and manufacturing sectors have fallen notably, however, in the past two years.

The amounts of FDI flowing to the banking sector, as well as the construction and real estate branches, have diminished significantly from the years early this decade. An even more severe contraction in inward FDI has hit the trade branch, which witnessed a net pull-out of inward FDI last year. The allure of various service branches (mainly corporate services) has faded.

FDI inflows to major sectors of Russian economy, 2010–2018

Sources: Central Bank of Russia and Rosstat.

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