Investment Priorities of France in Russia

Abstract

One of the main conditions for the Russian economy transition to growth rates above the global average is large-scale investment. The so-called «smart investments» are important for the accelerated economic development of Russia. Only a restricted range of states is a source of «smart investment». France is among them and it is a long-standing economic partner of Russia. French business implements long-term projects in Russia. After the economic sanctions being introduced, not a single company has left Russia; however, new investors do not come from France, and the operating investors evaluate the prospects for continuing work very carefully. As there is the economic sanctions mode, lending agencies in France, being afraid of losing their business in the United States, refuse to finance projects in Russia, even if they are not included into the sanctions list. Local manufacturing content of French companies still does not cover a wide range of areas in Russia, being limited mainly to agriculture. Compared to French, Russia’s investment contribution to France is disproportionately small. The article examines the factors determining the direct investment of France in Russia; the current investment agenda of French business in Russia; identifies the prospects for France’s investment participation in the Russian economy.

Keywords

• france
• russia
• direct investments
• smart investments
• covid-19