Importance Due to the ban on investing in Russia, the problem of investment attraction assumes particular relevance. The reduction of foreign investment inflows can and should be replaced by private domestic investments. The sources of such investments are savings of economic entities. Objectives The paper aims to assess the current state of the Russian investment potential and the possibilities of its use in the conditions of limited import of foreign investments. The objective is to compare foreign investment volumes coming to the country, capital outflow and the volume of potential internal resources. Methods In the paper, based on the transition from abstract to concrete, I have built up an approach to the analysis of Russian investment potential. Results I consider the impact of sanctions related to capital import to the territory of the Russian Federation on the investment potential of the country. I also show the importance of foreign investment for the country's economy. The article analyzes the potential of domestic investments as the aggregate of free available money funds of all economic entities, i.e. the State, population and enterprises. The paper addresses the capital outflow, which tends to increase, and under certain conditions it may become a source of domestic investments. Conclusions and Relevance The article concludes that there is a possibility to replace a part of foreign investments by internal sources. It will not entail serious threat of economic slowdown under conditions of existing sanctions. The article outlines the main areas of solving the problem: imposing tougher restrictions on capital export, increasing attractiveness of foreign direct investment to the country, encouraging commercial banks to provide loans to legal entities by the Bank of Russia.
Keywords: bank, investment, foreign, capital, outflow, inflow
References:
Gagarin P. Inostrannye investitsii v Rossii. Trendy – 2013 [Foreign investments in Russia. Trends – 2013]. Available at: Link. (In Russ.)
Devyatlovskii D.N. Problema privlecheniya inostrannykh investitsii v ekonomiku Rossii [Problem of attracting foreign investment in the Russian economy]. Sovremennye naukoemkie tekhnologii – Modern knowledge-intensive technologies, 2012, no. 7, pp. 46–47.
Kurbatova O. Investitsii v Rossii v 2013 godu [Investments in Russia in 2013]. Available at: Link. (In Russ.)
Malinovskaya V. Investitsionnyi klimat i investitsii v Rossii [Investment climate and investments in Russia]. Available at: Link. (In Russ.)
Malinovskaya V. Kak sanktsii povliyayut na rossiiskuyu ekonomiku? [How will sanctions affect the Russian economy?]. Available at: Link. (In Russ.)
MVF ozhidaet snizheniya rosta ekonomiki RF iz-za ottoka kapitala [IMF expects lower economic growth in the Russian Federation because of capital outflow]. Available at: Link. (In Russ.)
Medvedev ne isklyuchil uvelicheniya nalogovoi nagruzki [Medvedev did not rule out a tax burden increase]. Available at: Link. (In Russ.)
Minekonomrazvitiya RF opasaetsya negativnogo vliyaniya zapadnykh sanktsii [The Ministry of Economic Development of the Russian Federation fears the negative impact of the Western sanctions]. Available at: Link. (In Russ.)
Rossiya voshla v troiku liderov po pritoku inostrannykh investitsii [Russia joined the top three leaders of foreign investment influx]. Available at: Link. (In Russ.)
Starodubtseva E.B. Osobennosti razvitiya sberezhenii v Rossii [Features of the Russian savings development]. Finansy i kredit – Finance and credit, no. 23, 2008, pp. 58–62.
Starodubtseva E.B. Problemy razvitiya resursnoi bazy bankov [Problems of developing the resource base of banks]. Finansovaya analitika: problemy i resheniya – Financial analytics: science and experience, 2013, no. 47, pp. 2–8.
Statistika [Statistics]. Available at: Link. (In Russ.)
Ugryumova E.V. Problema pritoka inostrannykh investitsii v ekonomiku Rossii i gosudarstvennye mery po uluchsheniya investitsionnogo klimata [A problem of foreign investment inflow into the Russian economy and the State measures to improve investment climate]. Molodoi uchenyi – Young scientist, 2011, no. 5, vol. 1, pp. 229–232.
Ulyukaev ozhidaet ottoka kapitala v $90 mlrd pri prognoze v $100 mlrd [Ulyukaev expects capital outflow to reach $90 billion US dollars against forecasted $100 billion]. Available at: Link. (In Russ.)
Fond natsional'nogo blagosostoyaniya. Statistika [National Welfare Fund. Statistics]. Available at: Link. (In Russ.)
Fondovye novosti [Stock exchange news]. Available at: Link. (In Russ.)
Chaika O., Aliullova N., Getmanova D., Yakovleva A. Pochemu den'gi ukhodyat iz Rossii [Why money escapes Russia]. WEJ, no.1-2, February 2013, p. 23.
Chistyi ottok kapitala iz Rossii v 2014 godu ne prevysit $80 mlrd [Net capital outflow from Russia in 2014 will not exceed 80 billion US dollars]. Available at: Link. (In Russ.)
S&P cuts Russia's credit rating. Available at: Link.
