The document discusses foreign direct investment (FDI) in Russia. It defines FDI and describes its importance from the perspectives of firms and host countries. It provides an overview of Russia's economy, including GDP, growth rates, inflation, labor force, and population statistics. The document also discusses Russia's transition from a socialist to market economy and details its investment climate, including the legal framework, taxation, foreign exchange controls, intellectual property rights regulations, and competition policies relevant to FDI. It analyzes FDI trends in Russia and top investing countries and sectors. Risks and opportunities for foreign investors in Russia are also examined.

2. GROUP 12 Atul Singh Arvind Baid Ram Potty Sheetal Deshmukh Sunil Maurya

7. Russia: The Transition Economy

11. Investment Climate Legal Framework Foreign Exchange Control Taxation Competition Regulation & IPR Russia’s – Investment Climate

14. One of the lowest tax rates in Europe Source: RBC-Rating

20. Investment advantages of Russia Investors’ opinion Source : questioning of foreign investors « Russia as an object of investments », polled in 2005 г. by FIAC

22. Foreign Direct Investment in Russia, USD billion 26.7 2006 FDI Inflow In Russia

23. The food industry has attracted the highest number of FDI projects - 45 projects, associated with $2.4 billion of investment in 2002-2003. However, in terms of total investment, the energy sector is by far the biggest recipient – accounting for $10 billion in 2002-2003. Other major sectors include wood products ($1 billion), consumer goods ($95 million), automotive OEM ($670 million), and metals/mining ($552 million) sectors. FDI Inflow In Russia – Sector-wise Breakup

24. Accumulated foreign investment $ 111 . 8 Billion FDI Inflow In Russia – Top Investors

26. Davos (WEF- 2007)

30. Risks Investors’ opinion Source : questioning of foreign investors « Russia as an object of investments », polled in 2005 г. by FIAC

31. FDI confidence index A.T.Kearney in 2005 China India United States United Kingdom Poland Russia Brazil Australia Germany Hong Kong Hungary Czech Republic Turkey France Japan Mexico Spain Singapore Italy Thailand Canada Dubai/UAE South Korea Central Asia Romania Maintained ranking Moved down Moved up

33. The “IC” of BRIC Source : 2003 BRIC Report-Goldman Sachs

35. « If you are looking for a gold mine in the sphere of sciences and technologies, pay attention to Russia». George Schultz , Former US Secretary of State « As far as I noticed everything is not that hard and doesn’t differ from other countries » Andrew Kinghorn , Director of Internationa l Investments Knight Frank « There is much talk, particularly in the equity market, of the risks of investing in Russia, but we believe that the risks are more than counterbalanced by the opportunities, especially if you know where to find them» Steven Jennings , chairman of investment group « Renaissance Capital »