Competition among China, India, Brazil and other emerging markets is becoming increasingly heated as Russia continues to look more and more appealing to foreign investors.
A recent Foreign Investment Advisory Council and The PBN Company survey of 155 current and potential investors found Russia is becoming more competitive and enticing to Foreign Domestic Investment.
According to the survey four in 10 investors in Russia reported sales increases in 2005 that surpassed 30%, and three in 10 reported profit increases of more than 30%.
More than 90% of surveyed investors said they plan to increase both their business operations and investments in Russia over the next three years.
The appeal of Russian investments has nearly two thirds of those who haven’t already invested in the country saying to do so in the next three years, with only one third saying they do not plan on investing in Russia.
Both current and potential investors said Russia’s allure comes from its large market, sustained economic growth and its political and macroeconomics.
But investors continue to urge Russia to combat corruption. Two thirds of those with investments in Russia have been directly by corruption, naming tax authorities as the primary offenders.