The study was aimed at providing insight in relation to current actions to attract FDI in the regions, on the one hand, and how this is perceived by foreign investors and what their requirements are, on the other hand. The initial findings show that there is a gap between foreign investors’ expectations and measures undertaken by regional governments.
Some key conclusions coming out of the study:
- There are signs of change in the mindset of all stakeholders in the investment process (federal government, regional government, investors) that helps regions and, by extension, helps Russia to become a more attractive investment proposition for FDI.
- The institutional response to the issues arising in the attraction of FDI often fails to resolve the expectation gap and, despite attempts by the regions, has so far made an immaterial difference for foreign investment.
- Mid-size foreign investors have an especially high sensitivity to regional policies, while tier 1 investors have internal capabilities to overcome a range of obstacles that arise.
- On the basis of a sample of twelve regions, it is clear that the investment attractiveness of the regions differs significantly, with an almost even split between the winners and the losers in attracting FDI.
For more information on the study, download the full report.