Foreign investments in Russia under external restrictions: results and prospects

The article examines the interim results of the economic sanctions against cross-border capital flows and the countermeasures taken. It is noted that the emphasis in Western sanctions is shifting towards minimizing the possibilities of making international payments, and companies, financial organizations and individuals from neutral countries are becoming objects of sanctions pressure. The evolution of Russian countermeasures, on the one hand, is aimed at reviving the economy and investment activity, and on the other, at protecting the domestic market from unwanted capital outflow and controlling the activities of foreign investors in the country. An analysis of the statistics of the Bank of Russia shows that after passing the acute phase of 2022, indicators related to cross-border generally return to their previous tracks, which confirms the fact that all entities engaged in foreign economic activity have adapted to the new conditions. Russian businesses have been able to reformat their foreign assets by transferring them to Russian jurisdiction or to neutral countries. As for incoming direct investment, so far their inflow from friendly countries has not compensated in quantitative and qualitative terms for the consequences of the departure of “Western” investors.