MOSCOW, June 3. /TASS/. A significant growth of foreign direct investment in the Russian economy looks unlikely against the background of continued sanctions pressure and events such as the arrest of the founder of the Baring Vostok fund Michael Calvey, and the closure of the Russian office of the investment bank Morgan Stanley, according to the report prepared by the Russian Presidential Academy of National Economy and Public Administration.
"According to preliminary estimates of the balance of payments, in the Q1 of 2019, the volume of incoming foreign direct investment amounted to $11.5 bln. However, in the face of continued sanctions pressure and deterioration in Russia's investment image (including the arrest of Michael Calvey - Head of Baring Vostok, closure of a Russian office of the investment bank Morgan Stanley) a significant growth of foreign direct investment in the Russian economy is unlikely at the moment," the report said.
Experts noted that a number of investment projects with foreign participation are currently being discussed. In particular, Canadian company Kinross Gold announced its investment plans for the development of gold deposits in Chukotka. According to preliminary estimates, the volume of attracted foreign direct investment in the project could reach $1.2 bln until 2041, and the number of new jobs - over 61,000. In the summer of 2018, Korean company Hyundai Motor announced its intention to invest around 27 bln rubles ($411.64 mln) in the Russian market by submitting documents to conclude a special investment contract, which would enable it to receive state support in exchange for investments. In particular, the company planned to build an engine plant with a capacity of 150,000 units per year.