Concerning greater confidence of foreign investors in Russia and its readiness to diversify export

17. Duben 2017 - 10:41 -- Ashley Snow

Every expert who undertakes a study of Russia's economic situation would inevitably face the need to analyze and evaluate its export potential as at the present stage the significance of this factor is not just pertinent, but also that which largely determines the working model of the country's economy.
It is common knowledge that all the recent years Russia's export efforts were directed towards expansion of trade in fuels and raw materials. Oil, natural gas and their derivatives are still the main source of export incomes in the Russian budget. By comparison, the country's engagement in international cooperation of production, service trade or its participation in international technological and scientific exchanges is assessed as 'seriously deficient'.
At the same time, we cannot but mention modest yet indisputable achievements in Moscow's policy of export diversification, namely, greater awareness of the need to go back from fuel commodities to exports of various products of the Russian Industrial Complex as most multi-functional sector in the country's industry, and exports of manufactured products, primarily with high added value, which also includes the most innovative products' transfer onto external markets.
In view of some specific national characteristics, historical realities and local socio-economic traditions, it would be naïve to require immediate-action transformation of Russia's export. But the attention devoted to this problem by the country's authorities clearly indicates its further development vector and demonstrates Russia's readiness to play a full part in international division of labor in current conditions of rapidly growing globalization of the world economy.
It is inexplicably considered that the economic sanctions imposed against Russia have caused significant damage to its economy, greatly reducing its export potential and lowering its investment attractiveness. But in reality it is not exactly like that. Obviously, with sanctions being imposed, some part of traditional Russian export products turned out to be banned. Some foreign investors left the Russian market under pressure from their national Governments. Politically motivated rating agencies downgraded their forecasts for Russia to junk status. But two years later, their export and investment schemes suggested the relative economic stability rather than total shrinking of basic economic indicators. Time has shown that who took risks and some way or other remained at Russian market, they benefited from it.
Many Western investors assess the investment climate in current Russia as rather suitable, indicating their willingness to invest in Russian industries, commercial manufacture or companies. They say that current Russia, in general, has everything necessary for sustained economic development, intensification of export and economic sectors, as well as, moving rival products and technologies to external markets. And any kind of restrictive measures cannot stop its gradual development and effective movement forward.