Decline of Foreign Investment in Russia: A Historic Low Since 2001, According to UN Data

Foreign direct investment (FDI) in Russia plummeted to a mere $3.3 billion in 2024, marking its lowest point since 2001, as reported by the United Nations Conference on Trade and Development (UNCTAD).

The figures, released during the St. Petersburg International Economic Forum, indicate a staggering 62.8% drop in investments from 2023 to 2024 and a 50% decrease compared to 2021, the year before the conflict began, when Russia attracted $38.8 billion in FDI.

Sergei Aleksashenko, a former deputy governor of the Russian Central Bank who is currently living abroad, expressed to Reuters that even if the conflict were to cease immediately, few serious companies would view Russia as a viable investment opportunity due to the persistent political risks.

According to the Central Bank, foreign investment in Russia’s non-financial sectors has decreased by 57% over the last three years. The total cumulative FDI has fallen from $497.7 billion at the beginning of 2022 to $216 billion by January 2025, the lowest level since 2009.

Analysts note that an increase in state confiscation of private properties, such as the recent nationalization of Domodedovo Airport in Moscow, has created an unfavorable environment for foreign investors. Since the onset of the war, more than a dozen foreign-owned enterprises have been seized.

Last month, President Vladimir Putin stated that Western tech companies still operating in Russia but opposing the country’s interests should be «strangled.»

Aleksashenko highlighted to Reuters that «it’s evident that the situation regarding property rights deteriorates with each passing day.»

The UNCTAD report also emphasizes the significant contraction in 2022, during which foreign entities withdrew a net $15.2 billion, reflecting an urgent need to repatriate capital following the invasion of Ukraine and the subsequent imposition of extensive international sanctions.