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Localization of Foreign Business on the Territory of the Russian Federation under Conditions of Sanctions, Restrictions and Political Instability since 2014

Chernyaev Maxim Vasilyevich  (Candidate of Economic Sciences; Associate Professor, People’s Friendship University of Russia; Advisor on External Economic Activity Issues, Novas Energy Services Ltd.; Independent Expert on Russian & CIS Market, NRA International GmbH (Vienna, Austria) )

Mukhina Victoria Sergeevna  (Master of Science in People’s Friendship University of Russia, Managing Director «NRA International GmbH» (Austria, Vienna), Member of the Presidium Austrian-Russian Friendship Society (ORFG) )

Mazurchuk Timofey Mikhaylovich  (Student, People’s Friendship University of Russia)

The main objective of the present research is to reflect the actual economic activity of foreign companies locating their production facilities in Russia since the adoption of sanctions. In this regard, the investment activity of foreign companies in the Russian market since 2014 has been analyzed. Since that period, a decline in the investment activity of foreign counterparts has been witnessed by the world mass media. The authors of the article have prepared an analysis of the most attractive sectors of the economy, which became the objects of financial interests of foreign partners. There has been prepared a sample of companies whose activities have passed the full production localization process on the territory of the Russian Federation. Particular attention is paid to companies that have continued their investment activities in the regions of Russia after the worsening of the geopolitical situation in 2014. The paper has formulated and confirmed the conclusion about the investment attractiveness of the Russian market for foreign investors, which is illustrated by concrete examples of concluded deals.

Keywords:European business production localization, economic sanctions, investment activity of foreign companies, Russian economy, investment attractiveness, special economic zone (SEZ).

 

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Citation link:
Chernyaev M. V., Mukhina V. S., Mazurchuk T. M. Localization of Foreign Business on the Territory of the Russian Federation under Conditions of Sanctions, Restrictions and Political Instability since 2014 // Современная наука: актуальные проблемы теории и практики. Серия: ЭКОНОМИКА и ПРАВО. -2017. -№07. -С. 35-41
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