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Finance and Credit
 

Mechanisms to boost the investment activity of the Russian business sector under borrowing constraints in foreign markets

Vol. 24, Iss. 8, AUGUST 2018

PDF  Article PDF Version

Received: 4 April 2018

Received in revised form: 13 June 2018

Accepted: 27 June 2018

Available online: 29 August 2018

Subject Heading: FINANCIAL CAPITAL

JEL Classification: E22, F21, G18

Pages: 1859–1873

https://doi.org/10.24891/fc.24.8.1859

Petrenko I.A. Peoples' Friendship University of Russia, Moscow, Russian Federation
inna_petrenko@yahoo.com

https://orcid.org/0000-0003-2320-6100

Importance The paper analyzes the mechanisms to boost the investment activity of the Russian business sector under restricted borrowings in foreign markets.
Objectives The aim is to address comprehensively the investment activity of the Russian business sector at the present stage of development, identify key problems having a negative impact on investment activity, formulate mechanisms to encourage investment.
Methods The methodology rests on general and special methods of scientific research, like empirical study (comparison, data gathering and analysis), integrated approach, comparative study, synthesis of theoretical and practical material.
Results The paper analyzes the current state of the country's business sector in the system of investment activity. Due to economic sanctions of western countries, the Russian business is characterized by a loss of a channel to support the investment process with resources from global financial markets, a decline in support to investment projects by Russian banks, and a reduction in government funding. Under limited borrowings in external markets, the key task is to search for prospects to bolster the sector.
Conclusions The chilling effect of economic sanctions' consequences necessitates guidelines to resume investment in fixed assets and mechanisms to boost the investment activity in the Russian business sector.

Keywords: fixed assets, investment activity, business sector, external borrowing, incentive mechanism

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