The author shows that the “Eastern vector” in Russian investment relations is visible, but not sustainable. The growing importance of foreign direct investment (FDI) stock from Asian countries in 2014–2016 is associated with the reducing role of the European countries as well as the privatization of 19.5% of “Rosneft” shares by the investment consortium registered in Singapore. At the same time, the absolute volumes of FDI stock from China declined. The role of Russian Eastern regions in the “Eastern vector” formation has not yet become decisive. The “neighborhood effect” and the federal support of the Far East played a smaller role in the attracting of Asian investments than the consumer market capacity (which is much higher in the Western regions of the country, especially in Central Russia). Russian regions’ differentiation in FDI stock from the East Asian countries is also explained by three principal factors: sectoral structure of regional economies (a significant part of FDI stock is connected with the automobile industry), state policy for encouragement of investment both of federal and regional authorities (in particular, the establishment of special economic zones or industrial parks), the presence of natural resources. In the future, “Eastern vector” of Russian investment relations is likely to intensify as long as its formation is connected not only with the anti-Russian sanctions, but also with long-term fundamental factors. Firstly, one should mention the steady shift of Russian oil and gas production more and more Eastward (which began at the end of 2000-ies), the progress of energy supplies to the fast growing Asian markets, and the growing number of mutual investments within the oil and gas sector. Secondly, the strengthening of federal policy to attract foreign investors in the Eastern regions of the country, the creation of special regimes to support investors – the advanced special economic zones and the Free port of Vladivostok-city with the large-scale preferences for the stakeholders.
foreign direct investment, Siberia, Far East, East Asia, anti-Russian sanctions, fuel and energy complex, automotive industry, domestic market, neighbourhood effect, state investment policy
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