RUSSIA HARD PRESSED TO FIND FOREIGN INVESTMENT.
Publication: Monitor Volume: 1 Issue: 118
Economics Minister Yevgeny Yasin told an international conference on the Russian capital and investment market Friday that Russia could absorb $200-300 billion in foreign investment over the next 10-15 years. Yasin also said his ministry sees no need to revamp the taxation system to make it more attractive to investors. "Taxes take no more than 13 percent of the gross domestic product in Russia but 19 percent of GDP in the United States," according to Yasin. (5)
Foreign direct fixed investment in the Russian economy remains at a low level. Foreign direct investment in 1995 is expected to total about $1.3 billion. This is expected to rise to some $2.5 billion in 1996. These are extremely modest sums compared with the $25 billion or so reportedly invested in China and worldwide direct foreign investment of some $200 billion. High taxes, inflation, uncertain legal rights and enforcement, and unpredictable government policies all contribute to keeping Russia near the bottom of the list of foreign-investment recipients (130th place out of 145 countries).
Chemical-Weapons Expert Under Investigation.