Skip to main content
SpringerLink
Log in

Cross-Border Cooperation in the East of Russia: Foreign Direct Investment

  • INTERNATIONAL COOPERATION
  • Published:
Regional Research of Russia Aims and scope Submit manuscript

Abstract

The article studies the dynamics and structure of foreign direct investment (FDI) to Russia’s Eastern regions, taking into account the COVID-related economic shocks of 2020–2021. The problem is posed to understand what the FDI dynamics were since 2014–2015 and their spatial and sectoral distribution, whether anything changed during the COVID period, and also what FDI “baggage” the eastern territories were carrying going into 2022. Accumulated FDI in the form of equity participation over the reviewed period increased throughout the country as a whole, and in the Far East, at a faster rate. In Siberia, their share decreased, mainly due to as capital was withdrawn from resource projects. The sectoral structure of FDI in Russia changed after 2014: the share of FDI increased by more than 1.5 times in the raw materials sectors and decreased almost threefold in the manufacturing industry. The decline in FDI in the manufacturing industry in the East during and immediately after the pandemic was significantly less, and by 2022 its volume increased by 70% compared to 2015. The pandemic shock to FDI did not reach a critical level in Russia as a whole, but the eastern regions experienced it to a much lesser extent. By 2022, FDI volumes had recovered in almost all sectors compared to 2015, and in some sectors, they had significantly exceeded this level. Comparison of the trade turnover dynamics with Asia-Pacific countries led to the conclusion that the high demand for goods and resources that generates export–import flows between Russia and these countries is poorly “converted” into productive cooperation in the form of FDI. It is advisable to take this into account when developing an international economic cooperation policy following the 2022 sanctions.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1.
Fig. 2.
Fig. 3.
Fig. 4.
Fig. 5.

Notes

  1. https://www.kommersant.ru/doc/4119385.

  2. https://www.economy.gov.ru/material/file/ d4fe05319a3188801322b9f6677d9f73/Protokol_8-go.pdf.

  3. https://www.kommersant.ru/doc/5538040#:~:text=1.09. 2022%2C%2021%3A30.%20Shell%20отчалила%20с,акционера%20прежнего%20оператора%20Sakhalin%20Energy.

  4. https://iz.ru/1411808/2022-10-18/amerikanskaia-exxonmobil-soobshchila- o-polnom-vykhode-iz-proekta-sakhalin-1.

REFERENCES

  1. Antonova, N.E. and Lomakina, N.V., Institutional innovations for the development of the East of Russia: Effects of implementation in the resource region, Zh. Sib. Fed. Univ. Ser.: Guman. Nauki, 2020, vol. 13, no, 4, pp. 442−452.

    Google Scholar 

  2. Antonova, N.E., Lomakina, N.V., and Faiman, A.D., Prirodno-resursnyi sektor Dal’nego Vostoka Rossii: “proklyatie” ili lokomotiv razvitiya? (Natural Resource Sector of the Russian Far East: “Curse” or Engine of Development?), Gal’tseva, N.V., Ed., Khabarovsk: Inst. Ekon. Issled. Dal’nevost. Otdel. Ross. Akad. Nauk, 2022.

  3. Bufetova, A.N., Kolomak, E.A., Kryukov, V.A., Mel’nikova, L.V., Seliverstov, V.E., Territorial problems of Asian Russia in the context of the formation of state regional policy, in Novyi impul’s Aziatskoi Rossii (New Push for Asian Russia), Kryukov, V.A. and Suslov, N.I., Eds., Novosibirsk: Sib. Otdel. Ross. Akad. Nauk, 2022, pp. 78–107.

  4. Glazyrina, I.P., Faleychik, L.M., and Faleychik, A.A., Institutional policy and the role of foreign direct investment in the Far East of Russia, Reg. Res. Russ., 2021, vol. 11, no. 4, pp. 625–637. https://doi.org/10.1134/S2079970521040043

    Article  Google Scholar 

  5. Glazyrina, I.P., Faleychik, L.M., and Faleychik, A.A., Investments and cross-border cooperation in the East of Russia, Reg.: Ekon. Sotsiol., 2020, vol. 108, no. 4, pp. 202–234. https://doi.org/10.15372/REG20200409

  6. Isaev, A.G., Territories of rapid development: A new instrument of regional economic policy, EKO, 2017, no. 4, pp. 61–77.

  7. Izotov, D.A., Russian Far East’ investment cooperation with sub-global economic structures under the conditions of the national economy’s recession, Prostranstv. Ekon., 2018, no. 1, pp. 138–153. https://doi.org/10.14530/se.2018.1.138-153

  8. Izotov, D.A., Integration of the Russian economy with the Asia–Pacific countries: Opportunities and risks, Izv. Dal’nevost. Fed. Univ. Ekon. Upravl., 2022, vol. 102, no. 2, pp. 28–47. https://doi.org/10.24866/2311-2271/2022-2/28-47

  9. Kryukov, V.A. and Seliverstov, V.E., From the continental and resource curse of Siberia to institutional harmony, Reg. Res. Russ., 2021, vol. 11, suppl. 1, pp. S1–S12. https://doi.org/10.1134/S2079970522010038

    Article  Google Scholar 

  10. Kryukov, V.A. and Shmat, V.V., Asian Russia – conditions and obstacles to the progressive diversification of the economy of the macroregion, Prostranstv. Ekon., 2022, vol. 18, no. 1, pp. 34–72.

    Google Scholar 

  11. Kryukov, V., Porfir’ev, B., and Shirov, A., Memorandum of sovereign growth: Goals and objectives of economic policy in the new conditions, Ekspert, 2022, no. 20, pp. 44–46.

  12. Lee, H.-S., Chernikov, S.U., and Nagy, S., Motivations and locational factors of FDI in CIS countries: Empirical evidence from South Korean FDI in Kazakhstan, Russia, and Uzbekistan, Reg. Statist., 2021, vol. 11, no. 4, pp. 79–100. https://doi.org/10.15196/RS110404

  13. Minakir, P.A., Far Eastern institutional novations: Imitation of a new stage, Prostranstv. Ekon., 2019, vol. 15, no. 1, pp. 7–17. https://doi.org/10.14530/se.2019.1.007-017

  14. Minakir, P.A., Issledovaniya problem mezhdunarodnykh ekonomicheskikh vzaimodeystvii: global’nye, natsional’nye, regional’nye aspekty (Research into Problems of International Economic Interactions: Global, National, Regional Aspects), Khabarovsk: Inst. Ekon. Issled. Dal’nevost. Otdel. Ross. Akad. Nauk, 2022.

  15. Zubarevich, N.V., Spatial development strategy: priorities and tools, Vopr. Ekon., 2019, no. 1, pp. 135–145. https://doi.org/10.32609/0042-8736-2019-1-135-145

Download references

Funding

This work was supported by ongoing institutional funding. No additional grants to carry out or direct this particular research were obtained.

Author information

Authors and Affiliations

  1. Institute of Natural Resources, Ecology and Cryology, Siberian Branch, Russian Academy of Sciences, 672014, Chita, Russia

    I. P. Glazyrina & L. M. Faleychik

  2. Zabaykalsky State University, 672039, Chita, Russia

    I. P. Glazyrina & A. A. Faleychik

Authors
  1. I. P. Glazyrina
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. L. M. Faleychik
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. A. A. Faleychik
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding authors

Correspondence to I. P. Glazyrina, L. M. Faleychik or A. A. Faleychik.

Ethics declarations

The authors of this work declare that they have no conflicts of interest.

Additional information

Publisher’s Note.

Pleiades Publishing remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Glazyrina, I.P., Faleychik, L.M. & Faleychik, A.A. Cross-Border Cooperation in the East of Russia: Foreign Direct Investment. Reg. Res. Russ. 13 (Suppl 1), S98–S106 (2023). https://doi.org/10.1134/S2079970523600233

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1134/S2079970523600233

Keywords:

Search

Navigation