fdi announcements in russia 2013-2016investinrussia.com/data/files/fdi/fdi announcements report...

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

www.investinrussia.com6

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)

www.investinrussia.com www.rdif.ru8 9

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


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


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


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


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


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


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


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


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


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


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


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


EUROPE EXAMPLES OF PROJECTS ANNOUNCED BY EUROPEAN COMPANIES



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



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



NORTH AND SOUTH AMERICA EXAMPLES OF PROJECTS ANNOUNCED BY NORTH AMERICAN COMPANIES



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



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



MIDDLE EAST EXAMPLES OF PROJECTS ANNOUNCED BY MIDDLE EASTERN COMPANIES



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



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


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Moscow, Russia, 123317Telephone: +7 (495) 644-34-14

Fax: +7 (495) [email protected]

www.rdif.ruwww.investinrussia.com

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