Finance and Credit

On attracting direct investment of U.S. Transnational corporations to the Russian economy under sanctions

Vol. 24, Iss. 9, SEPTEMBER 2018

Received: 28 August 2018

Received in revised form: 10 September 2018

Accepted: 21 September 2018

Available online: 28 September 2018

Subject Heading: INVESTING

JEL Classification: F6, F21, F52, F63

Pages: 2233–2248

Koshko O.V. Vologda State University, Vologda, Russian Federation

ORCID id: not available

Romanova E.M. National Small and Medium-sized Enterprise Fund, Moscow, Russian Federation

ORCID id: not available

Importance The article shows major problems related to attracting U.S. investment to the Russian economy, taking into account 'unfavorable' prospects for cooperation between Russia and the USA.
Objectives The purpose is to identify main constraints and problems preventing an increase in the American capital inflow to our economy under counter sanctions.
Methods We employ methods of scientific abstraction, statistical analysis on the basis of domestic and foreign literature review.
Results The paper unveils positive and negative trends in the Russian-American investment cooperation, identifies problems in attracting foreign direct investment (FDI) of the U.S. transnational corporations to the Russian economy.
Conclusions To increase the inflow of U.S. direct investment to strategically significant sectors of our economy and improve the investment cooperation between Russia and the USA, it is necessary to solve essential problems hampering the successful bilateral cooperation, on condition that sanctions against our country be lifted. Russia should have a policy to develop methods of attracting capital to our country based on the principle of deterring FDI inflows to strategic sectors (as it is practiced by Japanese, Chinese, and Korean governments). Further prospects for bilateral investment cooperation are very uncertain. The United States does nothing to improve Russia–U.S. relations, much less to propel them to the next level. The article may be of interest to experts of the world economy, academic researchers, postgraduates and students majoring in economics and finance.

Keywords: foreign direct investment, UNCTAD, financial globalization, counter sanction, Bureau of Economic Analysis


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