ST PETERSBURG, Russia, June 19 (Reuters) – Recent U.N. data reveals a significant drop in foreign direct investment (FDI) into Russia, with little indication of recovery at the St Petersburg International Economic Forum. Western investors are largely absent due to ongoing geopolitical tensions and sanctions. Since the events of February 2022, Russia has pivoted towards partnerships with countries like China, India, and Turkey. Despite this, foreign holdings have decreased, and FDI inflows dropped by 62.8% year-on-year in 2024 to $3.35 billion. Sergei Aleksashenko, a former deputy governor of Russia’s central bank, noted that property rights concerns deter potential investors. The forum now primarily serves Russian businesses networking with politicians rather than attracting international interest. While some Western investors monitor opportunities, sanctions complicate cross-border transactions. President Vladimir Putin emphasizes state intervention only when national security is at risk. The event highlights pragmatism and opportunism among investors.
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