FDI flows from China into Russia hit new high in 2015

Foreign direct investment from China into Russia has reached a new high regarding project numbers in 2015. Greenfield investment monitor fDi Markets has recorded 21 projects (excluding retail), almost double the 12 recorded projects of the previous year and triple the figure recorded in 2012.

In terms of capital expenditure and job creation, 2014 was particularly strong due to several mega investments in the manufacturing business. Half of 2014’s 12 recorded projects are ascribed to the automotive original equipment manufacturer sector. This sector alone created 10,847 jobs, following an investment of $2.46bn.

The leading sector in 2015 was food and tobacco, with six recorded projects and a total investment of $240.8m, creating 884 jobs. Building and construction followed with three projects, which created 1074 jobs, following an investment of $384.8m.

In 2015 the most frequent business activity was once again manufacturing, counting 12 projects covering seven different sectors. The leading sector for manufacturing projects was food and tobacco. Others included aerospace, automotive components, building and construction, chemicals, minerals, as well as coal, oil and natural gas.

Project numbers for the first half of 2016 are parallelling the numbers in the first half of 2015, totalling seven projects. In terms of job creation, quarter one and quarter two of 2016 have exceeded 2015 by 324.9%, creating 3272 jobs as opposed to 770. From January until June 2016, total investment of $987.63m has been recorded, surpassing the total capital expenditure of $363.26m during the same timeframe the previous year by 171.88%. Following this development, 2016 is likely to maintain the upward FDI trend from China into Russia.