Importance To develop the national economy and expand the international economic ties and cooperation, the Russian Federation should employ advanced technologies and techniques, professional human resources, attract financial resources and utilize them effectively. The global practices prove advantages of using foreign investment, rather than only domestic one. In this respect, to attract the foreign investment, the national economy creates a favorable environment for investment. The investment environment is evaluated, being a criterion for would-be investors selecting several alternatives. In the meantime, an analysis of qualitative criteria of the Russian investment potential fails to allow making a definite conclusion. Objectives The research aims at investigating common macroeconomic indicators in order to identify strengths and weaknesses of the Russian economy shaping the Russian investment potential. Methods Using a correlation and regression analysis, we evaluate and describe the qualitative indicators of the Russian investment climate. Results As a result of the research, we point out weaknesses of the Russian investment environment, i.e. dominance of the mining industry in GDP, high volatility of the stock exchange and foreign exchange market, high risk associated with national issuers' securities. Considering advantages and imperfect aspects in the area, it is possible to explain the composition of foreign investment per type and area. Foreign portfolio investment constitutes the minimum portion of all the investment, with the specific weight of direct investment shrinking annually. Conclusions and Relevance Whereas Russia demonstrates a low level of the national debt and the national currency fluctuations do not affect the stock exchange market dramatically, we may conclude that Russia has a favorable environment for investment.
Keywords: investment climate, foreign capital, foreign direct investment, portfolio investment, industrial production index, foreign exchange rate, stock exchange rate, national debt
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