Investments to Russian economy through Singapore: 2016 in review 9 June 2017

Investments to Russian economy through Singapore: 2016 in review

In 2016 Singapore has provided half of overall amount of direct investments to Russia: according to official data of Central Bank of Russia in 2016 due to direct investments of Singaporean residents Russia acquired $16,3 billion (equals 49 per cent) with the total of $33 billion.

Statistics is quite an impartial thing, however if we pay attention to real transactions staying behind numbers, it will be clear that the significant increase of direct investments from Singapore (their volume has increased 88-fold in comparison with year 2015) has been introduced because of a great deal on purchase of shares of PJSC Rosneft Oil Company in the amount equivalent to $10, 2 billion between Singaporean QHG Shares Pte. Ltd. And OJSC ROSNEFTEGAZ that took place in December, 2016.

Asian tiger has shifted down countries through which a flow of direct investments to Russia previously took place: residents of Bahamas has invested money in the amount of $5, 8 billion, there were only $2, 4 billion from Bermudas. The inflow of investments from France has amounted to $2, 4 billion, Switzerland - $2 billion, residents of Austria has contributed to the Russian economy in the amount of $1, 8 billion. Interest of investors from Sweden and USA to Russia in year 2016 increased in 3, 3 and 1, 9 times respectively.

Cyprus, taking the leadership positions until year 2014, has begun to increase the volume of investments, but has failed to achieve the sustainable growth: the amount of direct investments of residents of Cyprus was at the level of $0, 2 billion. The Netherlands reached the same lever of overall investments. You can learn more about the comparison of these two countries with Singapore from the perspective of the best conditions for running business by clicking on the link

Other countries have failed to withstand the competition with the trio of leaders and have significantly decreased its contribution:  through British Virgin Islands funds came in the amount of $1 billion which was 2,5 times less, Jersey provided $0, 6 billion which was 3, 5 times less, Great Britain - $0, 4 billion – 2, 6 times less. China has decreased its volumes till $0, 35 billion which is 1, 8 times less, while investors from Germany has contributed to Russia in the amount of $0, 2 billion (6, 6 times less).

Russia as an investment hub has become unpopular with residents of Ireland (- $1, 8 billion) and Luxembourg (- $0, 8 billion), vice versa it seems that Russian residents at least formally began to fulfill its obligations to creditors from these countries as almost all funds that were being sent there from Russia were connected with debt instruments.

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