Wednesday, April 8, 2009

Three-quarters investfondov believe Russia and the CIS unattractive for investment.

Russia's position in the rating of emerging markets in terms of attractiveness of direct investment has sharply declined. This write Vedomosti, citing a study by the annual Association of the funds of direct investments in emerging markets (EMPEA) and fund Coller Capital. According to the poll, 74 percent believe investfondov Russia and CIS countries unattractive for investment.
According to experts from Coller, Russia "broke" from the BRIC countries (Brazil, Russia, India, China). Interest in investment in Brazil has grown, and to invest in China and India - has declined slightly, despite those countries affected the global economic crisis. According to the World Bank, Russia's GDP in 2009 dropped to 2.5 percent, while the Brazilian economy will grow by half, and China - at 6.5 percent.
The CIS countries have been only in the study area, which in the next year or two, investors will lose rather than gain. Payment for investment risk in Russia and the Commonwealth, one of the highest among all emerging markets - by 8.4 percentage points higher than for developed countries. The same high premiums investors require only sub-Saharan Africa.
EMPEA President Sarah Alexander noted that the extremely low attractiveness of Russia could be partly due to fears of investors concerning the intervention of Russian authorities in their structure. However, this applies only to those investors who do not have much experience in the country.
According to Rosstat, in 2008 the volume of foreign investments into the country fell by 14.2 percent over the previous year. Of these, direct investment fell by 2.8 per cent.

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