Russian Multinational Direct Investment in East Central European Countries

Part of the Studies in Economic Transition book series (SET)


This chapter assesses the characteristics of Russian outward foreign direct investment (OFDI) and multinationals in general and in particular in five EU-member Central and East European (CEE) states, including Czechia, Hungary, Poland, Slovakia and Slovenia. Besides official statistics, the research relies on company data analysed using Dunning’s eclectic paradigm and his typology of four motives. In addition to pull factors, the importance of push factors is emphasised. Weiner finds that Russian FDI in the five CEE countries is dominated by market-seeking and, to a lesser extent, efficiency-seeking projects carried out by state-owned or state-related private firms. Most Russian FDI has been done in hydrocarbons, iron, steel and machinery, but banking, software solutions, electronic production, real estate and even the light industry have also been targeted.


Outward foreign direct investment Multinational enterprises Russia Central and Eastern Europe Pull factors Push factors 


  1. Aircraft Industries. (n.d.). Company Profile. Retrieved from
  2. Anwar, A., & Mughal, M. Y. (2014). Why do Russian Firms Invest Abroad? A Firm Level Analysis. MPRA Paper, No. 58178. Munich Personal RePEc Archive. Retrieved from
  3. Belton, C. (2008). Copy China and Invest Abroad, Says Medvedev. Financial Times, 31 January. Retrieved from
  4. (2016). Vklady klientů ERB bank budou vyplácet od čtvrtka pobočky ČS. 17 October. Retrieved from
  5. bne IntelliNews. (2016). Czech National Bank Shutters Russian Exports Lender ERB. 24 October. Retrieved from
  6. Bulatov, A. (2017). Offshore Orientation of Russian Federation FDI. Transnational Corporations, 24(2), 71–89.CrossRefGoogle Scholar
  7. Bulatov, A., Kuznetsov, A., Kvashnin, Y., Maltseva, A., & Seniuk, N. (2016). Russian MNCs: Empirical and Theoretical Aspects. In R. van Tulder, A. Verbeke, J. Carneiro, & M. A. Gonzalez-Perez (Eds.), The Challenge of BRIC Multinationals (Progress in International Business Research, 11) (pp. 395–421). Emerald Group Publishing Limited.Google Scholar
  8. CBR. (2019a). Direct Investment in the Russian Federation: Inward Positions by Instrument and Partner Country (Directional Principle). Retrieved from
  9. CBR. (2019b). Direct Investment in the Russian Federation: Positions by Instrument and Partner Country (Asset/Liability Principle). Retrieved from
  10. CBR. (2019c). Direct Investment of the Russian Federation Abroad: Outward Positions by Instrument and Partner Country (Directional Principle). Retrieved from
  11. CBR. (2019d). Direct Investment of the Russian Federation Abroad: Positions by Instrument and Partner Country (Asset/Liability Principle). Retrieved from
  12. CBR. (2020a). Direct Investment of the Russian Federation by Institutional Sector. Retrieved from
  13. CBR. (2020b). Direct Investment of the Russian Federation by Instrument (Directional Principle). Retrieved from
  14. Deák, A. (2017). Emerging Diversity in Russia’s Energy Relations: What Role for Europe? The First Ghent Russia Colloquium, “EU–Russia Relations: How to Get Out of the ‘Midlife’ Crisis?” Ghent: Ghent University, 22 September.Google Scholar
  15. Deák, A., & Weiner, C. (2016). Country Report: Hungary. Unpublished manuscript prepared for the project “Russian Economic Influence in New Europe”, Center for the Study of Democracy (Sofia) and Center for Strategic and International Studies (Washington, DC).Google Scholar
  16. Deloitte. (2008). Russian Multinationals: New Players in the Global Economy. Moscow: Deloitte CIS.Google Scholar
  17. Dmitriyeva, A. (2017). Petr Khorak: Serva Group—25 let na rynke. Bolshaya yevropeyskaya mechta., 22 May. Retrieved from
  18. (2014). Lukoil odchází z Česka, benzinky prodá maďarské Mol. 4 August. Retrieved from
  19. EABR. (2017). YeAES i strany Yevraziyskogo kontinenta: monitoring i analiz pryamykh investitsiy. Doklad, No. 47. Saint-Petersburg: Tsentr integratsionnykh issledovaniy Yevraziyskogo banka razvitiya.Google Scholar
  20. EFDI. (2017). EFDI PR Committee Meeting: Changes ante portas… (27 Feb, Prague, Czech Republic). Newsletter, No. 7: 7. Retrieved from
  21. Ekoton. (n.d.-a). About Company. Retrieved from
  22. Ekoton. (n.d.-b). O nas. Retrieved from
  23. Eurostat. (2019). EU Direct Investment Positions, Breakdown by Country and Economic Activity (BPM6) [bop_fdi6_pos]. Last update June 17, 2019. Retrieved from
  24. Evraz. (2005). Evraz Group S.A. Completes Acquisition of Vitkovice Steel. News, 15 November. Retrieved from
  25. Figyelő. (2004). Rahimkulov a Gazprom-szálról. 4 November. Retrieved from
  26. Filippov, S. (2008). Russia’s Emerging Multinationals: Trends and Issues. UNU-MERIT Working Paper Series, No. 62. Maastricht: United Nations University, Maastricht Economic and Social Research and Training Centre on Innovation and Technology. Retrieved from
  27. (2008). Russian Miner UMMC Buys 51 pct of Czech Plane Maker. 2 June. Retrieved from
  28. Fortescue, S., & Hanson, P. (2015). What Drives Russian Outward Foreign Direct Investment? Some Observations on the Steel Industry. Post-Communist Economies, 27(3), 283–305.CrossRefGoogle Scholar
  29. Gazeta Wrocławska. (2015). Luxoft Poland otworzył swoje drugie centrum IT we Wrocławiu. 16 March. Retrieved from,10153778/.
  30. Gazeta Wyborcza. (2016). Luxoft—juě 2000 pracowników w Polsce, zatrudni jeszcze kilkaset. 15 April. Retrieved from,44425,19926779,luxoft-juz-2000-pracownikow-w-polsce-zatrudni-jeszcze-kilkaset.html?disableRedirects=true.
  31. Gazprom. (2012). Gazprom and Comita Discuss Work Plans for South Stream Telecom AG JV. Release, 26 December. Retrieved from
  32. Gazprom. (2014). Gazprom and Comita May Set up NGV Joint Venture in South Stream Project Countries. Release, 23 May. Retrieved from
  33. Gazprom Neft. (2011). Gazprom Neft and Slovenian Petrol Sign Memorandum of Understanding. Press Release, 22 March. Retrieved from
  34. GEFCO. (n.d.). GEFCO Magyarország. Retrieved from
  35. Gera, V. (2013). Poland Emerging as Major European Outsourcing Hub. U.S. News, 27 February. Retrieved from
  36. Global Trade Review. (2009). New Russian Bank Secures First for Europe. 7 May. Retrieved from
  37. Helmer, J. (2014). Evraz Plays the Hidden Hand: Vitkovice Steel Sale is a Related-Party Transaction., 17 April. Retrieved from
  38. Hovorka, J. (2013). Russian bank giant Sberbank aims high in Czech Republic. Aktuálně.cz, 1 March. Retrieved from
  39. IMEMO. (2009). Russian Multinationals Continue Their Outward Expansion in Spite of the Global Crisis. EMGP Report, 2 December. Moscow/New York: IMEMO and Vale Columbia Center on Sustainable International Investment. Retrieved from
  40. IMEMO. (2011). Investment from Russia Stabilizes After the Global Crisis. EMGP Report, 23 June. Moscow/New York: IMEMO and Vale Columbia Center on Sustainable International Investment. Retrieved from
  41. Kalotay, K. (2003). Outward Foreign Direct Investment from Economies in Transition in a Global Context. Journal for European Management Studies, 8(1), 6–24.Google Scholar
  42. Kalotay, K. (2008). Russian Transnationals and International Investment Paradigms. Research in International Business and Finance, 22(2), 85–107.CrossRefGoogle Scholar
  43. Kalotay, K. (2010a). Takeoff and Turbulence in the Foreign Expansion of Russian Multinationals. In K. P. Sauvant, W. A. Maschek, & G. A. McAllister (Eds.), Foreign Direct Investments from Emerging Markets: The Challenges Ahead (pp. 113–145). New York: Palgrave Macmillan.CrossRefGoogle Scholar
  44. Kalotay, K. (2010b). The Future of Russian Outward Foreign Direct Investment and the Eclectic Paradigm: What Changes After the Crisis of 2008–2009? Competitio, 9(1), 31–54.CrossRefGoogle Scholar
  45. Kalotay, K. (2015). Acquisitions as Engines of Foreign Expansion of Russian Multinationals. In M. Demirbag & A. Yaprak (Eds.), Handbook of Emerging Market Multinational Corporations (pp. 239–259). Cheltenham/Northampton: Edward Elgar.Google Scholar
  46. Kalotay, K., & Sulstarova, A. (2010). Modelling Russian Outward FDI. Journal of International Management, 16(2), 131–142.CrossRefGoogle Scholar
  47. Kalotay, K., Éltető, A., Sass, M., & Weiner, C. (2014). Russian Capital in the Visegrád Countries. Working Papers, No. 210. Budapest: Institute of World Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences. Retrieved from
  48. Kaspersky. (n.d.). O nas. Retrieved from
  49. Krainová, P. (2005). Akcie Vítkovice Steel byly převedeny. Ministerstvo financí České republiky, 14 November. Retrieved from
  50. Kuznetsov, A. (2010a). Industrial and Geographical Diversification of Russian Foreign Direct Investments. Electronic Publications of Pan-European Institute, No. 7/2010.Google Scholar
  51. Kuznetsov, A. (2010b). Masshtaby rossiyskoy investitsionnoy ekspansii v Yevrope. In A. Kuznetsov (Ed.), Vliyaniye rossiyskoy investitsionnoy ekspansii na obraz Rossii v Yevrope (pp. 19–28). Moscow: IMEMO RAN.Google Scholar
  52. Kuznetsov, A. (2011). Evolyutsiya rossiyskikh TNK: ot regionalnykh kompaniy k globalnym. Vestnik federalnogo gosudarstvennogo uchrezhdeniya “Gosudarstvennaya registratsionnaya palata pri Ministerstve yustitsii Rossiyskoy Federatsii”, No. 4: 4–14.Google Scholar
  53. Kuznetsov, A. (2013). Global Expansion of Russian Multinationals after the Crisis: Results of 2011. EMGP Report, 16 April. Moscow/New York: IMEMO and Vale Columbia Center on Sustainable International Investment. Retrieved from
  54. Kuznetsov, A. (2014). Russian Multinationals FDI Outflows Geography: The Emerging Dominance of Greater Europe. European Research, 67(1–2), 130–135.Google Scholar
  55. Kuznetsov, A. (2017). Prospects of Diversifying Russian Direct Investment Abroad. Studies on Russian Economic Development, 28(1), 79–86.CrossRefGoogle Scholar
  56. Lesjak Tušek, P. (2007). Ruski Koks in SIJ združila interese. Vseslovensko Združenje Malih Delničarjev, 3 March. Retrieved from
  57. Liuhto, K. (2015). Motivations of Russian Firms to Invest Abroad: How do Sanctions Affect Russia’s Outward Foreign Direct Investment? Baltic Region, 7(4), 7–26.CrossRefGoogle Scholar
  58. Liuhto, K. (2016). Does Ownership Matter in an OFDI Decision of a Russian Firm? The Case of Russia’s Ten Largest Investors Abroad. In K. Liuhto, S. Sutyrin, & J.-M. F. Blanchard (Eds.), The Russian Economy and Foreign Direct Investment (pp. 248–265). Abingdon/New York: Routledge.CrossRefGoogle Scholar
  59. Liuhto, K., & Majuri, S. (2014). Outward Foreign Direct Investment from Russia: A Literature Review. Journal of East–West Business, 20(4), 198–224.CrossRefGoogle Scholar
  60. Ljubljanska borza. (2014). Probanka, d. d., Maribor. Information on successful sale of assets. Public Announcements, 24 July. Retrieved from
  61. Luxoft. (2016). Luxoft invests in Warsaw adding new IT jobs in Poland. Press, 30 May. Retrieved from
  62. Luxoft. (n.d.). Luxoft Corporate Profile. Retrieved from
  63. Mathews, J. A. (2002). Dragon Multinational: A New Model of Global Growth. Oxford: Oxford University Press.Google Scholar
  64. (2006). Gruppa ChTPZ priobrela kontrol nad 100% aktsiy cheshskogo zavoda MSA a.s. 6 June. Retrieved from
  65. Narula, R. (2006). Globalization, New Ecologies, New Zoologies, and the Purported Death of the Eclectic Paradigm. Asia Pacific Journal of Management, 23(2), 143–151.CrossRefGoogle Scholar
  66. Nestmann, T., & Orlova, D. (2008). Russia’s Outward Investment. Deutsche Bank Research, 30 April.Google Scholar
  67. New Europe. (2003). AEB Bank Expanding Horizons. 13 July. Retrieved from
  68. New Europe. (2004). Skoda Holding Dumps 3 Units. 2 May. Retrieved from
  69. New Europe. (2006). Arkley Capital acquires Czech’s MSA. 11 June. Retrieved from
  70. Nosko, A. (2013). Energy Security in Transition: Coping with Energy Import Dependence in the Czech Republic, Slovakia and Hungary. Ph.D. Dissertation. Budapest: Central European University. Retrieved from
  71. Nuclear Engineering International. (2011). Through New Czech JV, TVEL Creeps up to Europe. 26 December. Retrieved from
  72. Orbán, A. (2008). Power, Energy, and the New Russian Imperialism. Westport, CT/London: Praeger Security International.Google Scholar
  73. OS KOVO. (2016). Kunovice: Ministr Mládek chce jednat s majiteli Aircraft Industries. Retrieved from
  74. OTP Bank. (n.d.). Tulajdonosi struktúra. Retrieved from
  75. Panibratov, A. (2013). The Influence of the State on Expanding Russian MNEs: Advantage or Handicap? Russie.NEI.Visions, No. 73. Paris: Ifri. Retrieved from
  76. Panibratov, A. (2017). International Strategy of Emerging Market Firms: Absorbing Global Knowledge and Building Competitive Advantage. Abingdon/New York: Routledge.CrossRefGoogle Scholar
  77. Panibratov, A., & Kalotay, K. (2009). Russian Outward FDI and Its Policy Context. Columbia FDI Profiles, 13 October. New York: Vale Columbia Center on Sustainable International Investment. Retrieved from
  78. Panibratov, A., & Michailova, S. (2019). The Role of State Ownership and Home Government Political Support in Russian Multinationals’ Internationalization. International Journal of Emerging Markets, 14(3), 436–450.Google Scholar
  79. (2016). Lukoil niespiesznie opuszcza Polskę. 20 September. Retrieved from
  80. Pilsen Steel. (2010). The Holding Group “United Group” Expects Threefold Increase in Sales Volume. Press Releases, 2 November. Retrieved from
  81. Power Machines. (2004). OMZ—Power Machines Group purchased Skoda Holding Subsidiaries. News, 23 April. Retrieved from
  82. Pražský Telegraf. (2013). Červa Export Import: brend Chekhii v Yevrope. 7 November. Retrieved from
  83. Prusińska, O. (2010). Białystok. Ekoton pracuje z Aton-Ht nad polską propozycją do Ekonobla., 21 July. Retrieved from,10277994/.
  84. Puls Biznesu. (2008). Severstallat zainwestuje w Sosnowcu blisko 20 mln euro. 21 May. Retrieved from
  85. Rosstat. (2009). Investitsii v Rossii 2009. Moscow: Rosstat.Google Scholar
  86. Rosstat. (2014). Finansy Rossii 2014. Moscow: Rosstat.Google Scholar
  87. Sberbank Europe. (n.d.). Czech Republic. Retrieved from
  88. Sberbank Hungary. (n.d.). About Us. Retrieved from
  89. Severstal. (2008). AO «Severstallat» v rezultate pismennykh ofertnykh torgov priobrelo imushchestvo predpriyatiya «Technologie Buczek S.A.», nakhodivshegosya v sostoyanii bankrotstva,—soobshchil Predsedatel Soveta AO «Severstallat», chlen soveta direktorov OAO «Severstal» Anatoliy Kruchinin. Novosti, 26 March. Retrieved from
  90. Simon, E., & Szép, I. (2005). Meg kell őszülni a sikerhez. Beszélgetés Medget Rahimkulovval, az Általános Értékforgalmi bank többségi tulajdonosával. Figyelő, 48(45), 68–71.Google Scholar
  91. Skolkovo. (2007). Russian Multinationals Bullish on Foreign Markets. Moscow/New York: Skolkovo—Columbia Program on International Investment, 10 December. Retrieved from Scholar
  92. Skolkovo. (2008). Emerging Russian Multinationals: Achievements and Challenges. Moscow/New York: Skolkovo and Columbia Program on International Investment, November. Scholar
  93. Skolkovo. (2009). Global Expansion of Emerging Multinationals: Post-Crisis Adjustment. SIEMS Monthly Briefing, May. Skolkovo Institute for Emerging Market Studies. Retrieved from
  94. Špáni, I. (2001). Yukos chce Transpetrol lepšie využiť. Hospodárske noviny, 13 December. Retrieved from
  95. SPIRIT Slovenia. (2007). Majority Stake in Steel Group Sold to Russian Company Koks. 5 March. Retrieved from Scholar
  96. SPIRIT Slovenia. (2012). Steel Group Owners Happy with Business in Slovenia. 28 December. Retrieved from Scholar
  97. Takáč, K. (2019). Slovakia: Energy Dependence Vulnerabilities. In O. Shentov, R. Stefanov, & M. Vladimirov (Eds.), The Russian Economic Grip on Central and Eastern Europe (Routledge Contemporary Russia and Eastern Europe Series) (pp. 221–231). Abingdon/New York: Routledge.Google Scholar
  98. TASS. (2011). Russia’s Sitronics Enters 100 Top World High-Tech Companies. 1 November. Retrieved from
  99. TASS. (2015). Slovenian Comita May Implement JV South Stream Telecom within Turkish Stream Project. 1 April. Retrieved from
  100. Tepavcevic, S. (2013). Russian Foreign Policy and Outward Foreign Direct Investments: Cooperation, Subordination, or Disengagement? Ph.D. Dissertation. Budapest: Central European University. Retrieved from
  101. The Slovenia Times. (2012). Terme Maribor Sold to Russians. 2 April. Retrieved from
  102. UNCTAD. (2015). World Investment Report 2015: Reforming International Investment Governance. New York/Geneva: United Nations.Google Scholar
  103. UNCTAD. (2016). World Investment Report 2016: Investor Nationality: Policy Challenges. New York/Geneva: United Nations.Google Scholar
  104. UNCTAD. (2017). World Investment Report 2017: Investment and the Digital Economy. New York/Geneva: United Nations.Google Scholar
  105. UNCTAD. (2019). World Investment Report 2019: Special Economic Zones. New York/Geneva: United Nations.Google Scholar
  106. UNCTAD FDI Database. (n.d.). Retrieved from
  107. Vahtra, P., & Liuhto, K. (2004). Expansion or Exodus? Foreign Operations of Russia’s Largest Corporations. Electronic Publications of Pan-European Institute, No. 8/2004.Google Scholar
  108. Vasileva, A. (2014). Continuity and Change in Russian Capitalism. In U. Becker (Ed.), The BRICs and Emerging Economies in Comparative Perspective: Political Economy, Liberalisation and Institutional Change (pp. 100–122). Abingdon: Routledge.Google Scholar
  109. Warga, Ž. (2007). The Slovenian Steel Industry: One of the Pillars of the High-Tech Society. sinfo, 6, 21–24.Google Scholar
  110. Weiner, C. (2006). Russian FDI in Central and Eastern European Countries: Opportunities and Threats. Working Papers, No. 168. Budapest: Institute for World Economics, Hungarian Academy of Sciences. Retrieved from
  111. (2014). Luxoft zatrudni ok. 600 informatyków w Krakowie i Wrocławiu. 4 December. Retrieved from,239874_1_0_0.html.

Copyright information

© The Author(s) 2020

Authors and Affiliations

  1. 1.Institute of World EconomicsCentre for Economic and Regional StudiesBudapestHungary

Personalised recommendations