2015
FDI ANNOUNCEMENTS IN RUSSIA 2013-2016FACTS AND FIGURES
2015
CONTENTS
December 2016. Russian Direct Investment Fund ©
The evaluation of FDI announcements is based on daily monitoring of intentions/deals, publicly announced in business media and official press releases. This database tracks those FDI announcements that involve the creation of new facilities or modernizing existing production capacities in Russia at a minimum value of USD 500,000. The research does not cover investments in the real estate sector.
FDI ANNOUNCEMENTS OVERVIEW 2013-2016
FDI ANNOUNCEMENTS BY WORLD REGION
6
22
I FDI ANNOUNCEMENTS OVERVIEW 2013-2016
Mars petfood plant groundbreaking ceremony. Rostov Region, October 2015
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FDI ANNOUNCEMENTS OVERVIEW2013-2016
Since 2013, the number of FDI announcements in Russia has been growing steadily, at a CAGR of 46% in 2013–2016.
In 2016, foreign investors announced 252 projects to be implemented in Russia, i.e. 22% more than in 2015 and 211% more than in 2013. In 2016, the amount of investments announced increased by 73% vs. 2015, to USD 24.6 bn, and the number of planned new jobs grew by 23%, to 9,000.
Moscow Region remaines the leading destination for FDI announcements with over 9% of the total number in all Russian regions.
China remains the top source country for FDI announcements in 2014-2016 (15.8% of the total number of announcements in 2016). In 2016 and 2015, Chinese companies considered agriculture as the most attractive destination to invest in.
The top sector by FDI announcement numbers – Machinery and equipment – accounted for 35% of all FDI announcements in Russia. In 2016 Germany replaced Italy and the USA as the top source country for FDI announcements in Machinery and equipment.
FDI ANNOUNCEMENTS WERE MADE IN 2016
252Top destination sector for FDI announcements
MACHINERY AND EQUIPMENT
Top source country for FDI announcements
CHINA
Top destination region for FDI announcements
MOSCOW REGION
Investments announced
$24,6 BLN
$
New jobs announced
9,0 THOUSAND
Growth in the number of FDI announcements
46%(CAGR13-16)
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THE NUMBER OF FDI ANNOUNCEMENTS TRIPLED IN 2016 COMPARED TO 2013
Source: RDIF analytics, company data
2016
2015
2014
2013 81
103
206
252CAGR 13-16 46%
Number of FDI announcements, 2013–2016
MANUFACTURING ACQUIRES FOR OVER 90% OF FDI ANNOUNCEMENTS IN RUSSIA
FDI announcements by type of activity, 2013–2016
2013
3.6 SERVICES
96.4 MANUFACTURING
2014
5.7 SERVICES
94.3 MANUFACTURING
2015
5.2 SERVICES
94.8 MANUFACTURING
2016
4.4 SERVICES
95.6 MANUFACTURING
Source: RDIF analytics, company data Manufacturing : industry, R&D, logistics. Services: marketing and sales,
representative offices, business services, training
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TOP SOURCE COUNTRIES FOR FDI ANNOUNCEMENTS IN 2013–2016
CHINA IS THE TOP SOURCE COUNTRY FOR FDI ANNOUNCEMENTS IN RUSSIA
FDI announcements breakdown by TOP 5 source countries, 2013–2016, %
Number of FDI announcements, 2013–2016
Source: RDIF analytics, company data Source: RDIF analytics, company data
2013 2014 2015 2016
16.322.8
15.8
16.311.9
16.010.7
17.313.5 9.2 9.9
11.12.9 7.3 8.7
2.5
2014 2015 2016
China
Germany
Japan
USA
France
17 47 40
17 30
25
15 223
22
14 19
China
Germany
Japan
USA
France
2013
2
13
14
9
10.79.6 2.96.1 6 27105
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INVESTMENTS, ANNOUNCED BY FOREIGN COMPANIES, INCREASED FIVE TIMES IN 2016 AS COMPARED TO 2013
Investments, announced by foreign companies, 2013–2016, USD bn
FIVE COUNTRIES WILL ENSURE OVER 80% OF THE TOTAL AMOUNT OF ANNOUNCED INVESTMENTS
TOP 5 source countries and TOP 5 destination regions
for announced investments, 2016, USD bn
Source: RDIF analytics, company data Source: RDIF analytics, company data
4.7
17.3
14.2
24.6CAGR 13-16 74%
2016
2015
2014
2013
2016
China
UAE
Japan
Thailand
United Kingdom
2.4
1.3
1.0
0.8
15.0
2016
Irkutsk Region
Krasnodar Krai
Ulianovsk Region
Ryazan Region
Sakhalin Region
2.5
2.1
1.0
1.0
11.0
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FDI ANNOUNCEMENTS ARE TO CREATE FOUR TIMES AS MANY JOBS IN 2016 AS COMPARED TO 2013
Number of jobs, announced by foreign companies, 2013–2016, ‘000
5 COUNTRIES WILL ENSURE OVER 80% OF THE TOTAL NUMBER OF ANNOUNCED JOBS
Source: RDIF analytics, company data Source: RDIF analytics, company data
TOP 5 source countries and TOP 5 destination regions
for announced jobs, 2016, ‘000
2.0
14.5
7.3
9.0CAGR 13-16 65%
2016
China
Austria
France
Finland
Japan
1.5
0.6
0.5
0.4
4.62016
2015
2014
2013
2016
Novosibirsk Region
Tambov Region
Ulianovsk Region
Tver Region
Primorskiy Krai
1.2
1.2
0.7
0.4
4.0
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MACHINERY AND EQUIPMENT REMAIN THE PRIORITY SECTOR FOR FDI ANNOUNCEMENTS
MACHINERY AND EQUIPMENT, PHARMACEUTICAL INDUSTRY AND AGRICULTURE ARE THE MAJOR DRIVERS
OF FDI ANNOUNCEMENTS GROWTH
Industry structure of FDI announcements, 2013–2016 Pharmaceutical
industry andbiotechnologies
Construction, construction materials
Cars and car parts
Machinery and equipment
Food and drinks
9,9
Other sectors
Chemicals
10,3
9,1
8,3
7,96,3
32,4
15,8 Agriculture
Source: RDIF analytics, company data
FDI announcements breakdown by sector and TOP source countries, 2013–2016, %
2014 2015 2016
Machinery and equipment
Pharmaceuticalindustry and
biotechnologies
Food and drinks
Agriculture
Cars and car parts
23
26
25
2017
40
16
8 12
6 20
223
28
2013
8
2
14
13
3 23
Japan 23.5China 17.6Czech Republic 11.8
Switzerland 19.0China 19.0Italy 14.2
USA 26.9China 11.5Germany 11.5
Germany 21.0China 21.0USA 10.5Japan 10.5
Germany 27.5Italy 15.0Czech Republic 12.5
USA 16.0France 16.0Italy 12.0
China 21.7Japan 17.3Germany 13.0
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FIVE RUSSIAN REGIONS ACQUIRE FOR OVER ONE THIRD OF FDI ANNOUNCEMENTS
Share of the Top destination regions in the total number of FDI announcements, 2013–2016, %
PRIMORSKY KRAI IS THE LEADING DESTINATION REGION IN TERMS OF FDI ANNOUNCEMENTS GROWTH
Number of FDI announcements, 2013–2016, % YOY
Source: RDIF analytics, company data Source: RDIF analytics, company data
Rank2016 (2015)
2016 2015 2014 2013
1 (1) Moscow Region 9.9 7.3 3.8 6.22 (2) Primorsky Krai 8.3 5.3 0.9 2.53 (4) Republic of Tatarstan 6.3 4.9 7.8 2.54 (7) Ulianovsk Region 4.4 3.4 4.9 2.5
5 (14) Kaluga Region 4.4 1.9 5.8 4.9
Total projects 252 206 103 81
2014 2015 2016
Primorsky Krai
Republic of Tatarstan
Moscow Region
Ulianovsk Region
Kaluga Region
-50 +1000
+60
+56
+57
+175+50
+90
-33
+25
+275
+40+150
+300
-20
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1 Republic of Adygeya2 Republic of Bashkortostan3 Kabardino-Balkarian Republic4 Karachayevo-Circassian Republic5 Republic of Karelia6 Republic of Mari El
7 Republic of Sakha (Yakutia)8 Republic of Tatarstan9 Chechen Republic10 Altai Krai11 Kamchatsky Krai12 Krasnodarsky Krai
13 Krasnoyarsky Krai14 Primorsky Krai15 Stavropolsky Krai16 Khabarovsky Krai17 Arkhangelsk Region18 Belgorod Region19 Vladimir Region
20 Voronezh Region21 Irkutsk Region22 Kaliningrad Region23 Kaluga Region24 Kirov Region25 Kursk Region26 Leningrad Region
27 Lipetsk Region28 Magadan Region29 Moscow Region30 Nizhny Novgorod Region31 Novgorod Region32 Novosibirsk Region33 Omsk Region
34 Orenburg Region35 Orel Region36 Penza Region37 Pskov Region38 Rostov Region39 Ryazan Region40 Samara Region
41 Saratov Region42 Sakhalin Region43 Sverdlovsk Region44 Smolensk Region45 Tambov Region46 Tver Region47 Tomsk Region
FDI ANNOUNCEMENTS MAP IN 2016
over 10 projects 5–10 projects up to 5 projects
9
14
29
26
12 38
2
43
50
2418
27
23
169
315
41 40
51
20 4524
30
48
22
46
31
52
17
5
47
32
10
21
7
11
19
4
13
25
28
33
34
35
1
6
42
44
49
48 Tula Region49 Tyumen Region50 Ulianovsk Region51 Chelyabinsk Region52 Yaroslavl Region
II FDI ANNOUNCEMENTS BY WORLD REGION
Siemens gas turbine plant opening ceremony. Leningrad Region, June 2015
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ASIA-PACIFIC
FDI announcements breakdown by TOP source countries, 2013–2016, % of the total number of announcements
EXAMPLES OF PROJECTS ANNOUNCED BY ASIA-PACIFIC COMPANIES
Source: RDIF analytics, company data Source: RDIF analytics, company data
2016 2015 2014 2013
1 China 15.8 22.8 16.3 2.52 Japan 10.7 2.9 9.6 6.13 South Korea 2.7 7.7 2.9 2.54 India 2.0 1.4 1.9 1.25 Thailand 0.4 0.5
Total announcements 252 206 103 81
Year Country Destination Company Project
2016 Thailand Ryazan Region CP Group Production of milk and dairy products 1.0
2015 India Stavropolsky Krai Lupin Limited
Production of pharmaceutical substances
0.2
2014 China Republic of Tatarstan Haier Production of household
appliances 0.05
2013 Japan Ulianovsk Region Bridgestone Corporation Production of tyres 0.4
Investment amount, USD bn
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EUROPE EXAMPLES OF PROJECTS ANNOUNCED BY EUROPEAN COMPANIES
Source: RDIF analytics, company data Source: RDIF analytics, company data
FDI announcements breakdown by TOP source countries, 2013–2016, % of the total number of announcements
2016 2015 2014 2013
1 Germany 11.9 10.7 16.3 16.02 France 8.7 7.3 2.9 11.13 Italy 8.3 6.3 4.9 6.24 Switzerland 3.6 1.9 2.9 7.45 Finland 3.2 3.4 1.9 4.9
Total announcements 252 206 103 81
Year Country Destination Company Project
2016 Netherlands Lipetsk RegionLamb Weston / Meijer
Production of frozen potato products for food service chains
0.1
2016 France Novosibirsk Region
FM Logistic
Network of wholesale and distribution centers 0.2
2015 France Kaliningrad Region Arc Production of kitchen
utensils 0.1
2015 Finland St. Petersburg Oy Karl Fazer Ab
Production of bakery products 0.2
2014 Germany, Belgium
Nizhny Novgorod Region
BASF AGSolvay SA
Production of PVC and caustic soda 1.6
Investment amount, USD bn
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NORTH AND SOUTH AMERICA EXAMPLES OF PROJECTS ANNOUNCED BY NORTH AMERICAN COMPANIES
Source: RDIF analytics, company data Source: RDIF analytics, company data
FDI announcements breakdown by TOP source countries, 2013–2016, % of the total number of announcements
2016 2015 2014 2013
1 USA 9.9 9.2 13.5 17.32 Canada 0.4 1.0 2.53 Brazil 0.4 1.0
Total announcements 252 206 103 81
Year Country Destination Company Project
2016 USA Kaluga Region Pfizer Production of pharmaceuticals 0.1
2015 USA Rostov Region Mars Inc Production of pet food 0.062014 USA Tula Region Сargill Advanced wheat processing 0.08
2013 USA Moscow Region AGCO Production of self-propelled
agricultural machinery 0.1
Investment amount, USD bn
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MIDDLE EAST EXAMPLES OF PROJECTS ANNOUNCED BY MIDDLE EASTERN COMPANIES
Source: RDIF analytics, company data Source: RDIF analytics, company data
FDI announcements breakdown by TOP source countries, 2013–2016, % of the total number of announcements
2016 2015 2014 2013
1 UAE 2.0 1.9 1.9 1.22 Iran 0.8 0.53 Israel 0.4 0.5 2.5
Total announcements 252 206 103 81
Year Country Destination Company Project
2016 UAE Krasnodarsky Krai DP World
Development of the Novorossiysk Commercial Seaport
2.0
2016 Iran Ulianovsk Region
Rad Sane Atti Industrial Group
Production of gas cylinders 0.03
2016 Israel Kirov RegionTeva Pharmaceutical Industries
Production of sterile injectables
Investment amount, USD bn
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