Ministry for economic development of the Russian Federation reports rise in foreign investment

Ministry for economic development of the Russian Federation reports rise in foreign investment

Foreign direct investment in Russia totaled about $26 billion in the first half of 2006, Deputy Economy Minister Kirill Androsov told reporters on Tuesday.

In the first six months of last year, foreign direct investment in the Russian economy stood at $10.7 billion, up from $4.5 billion in the corresponding period of 2004, according to the Central Bank of Russia.

Androsov said there was “ significant investment demand in Russia but it is being hampered by the country’s poorly developed infrastructure.” The Economy Ministry believes this problem could be solved by completing infrastructure projects funded by the Investment Fund of Russia.

On Monday the Investment Commission of the Economy Ministry approved plans to use the Investment Fund of the Russian Federation for funding seven infrastructure projects, together with private investors. The Economy Ministry also hopes for a significant inflow of foreign capital into concession projects.

The maximum size of the Investment Fund would be between RUR 180 billion and RUR 190 billion in 2007, Androsov said. The Investment Fund was planned to be RUR 90 billion, plus RUR 60 billion not used in 2006, and between RUR 35 billion and RUR 37 billion saved on interest payments thanks to Russia’s early debt payment to the Paris Club of creditors. (Source: www.rbc.ru)