Herald
Russia is searching for foreign investment

According to the Russian Federal State Statistics Service the inflow of direct investment made up $12,3 billon (381,3 billon rubles) for the 9 month period of 2012, that makes about 12% from the total amount of foreign investment in Russia. For comparison, from January to September of 2011 direct investment made about 9% from the total amount of foreign investment.

From January to September of 2012 Russian economy received $114,5 billion (3,6 trillion rubles) from foreign sources, which is 14.4% less that in the same period in 2011 (4,2 trillion rubles). 

Investors were most attracted to the construction market along with manufacturing companies. At the same time, investors are more careful with investment in finance and mining that is positive trend. Investment into processing sector creates the organizational capital, stimulates development of new technologies and approaches to work that in this sector especially doesn't suffice. While mining industry copes well without foreign investments.

The foreign legal entities acting as founders of Russian companies can serve as one of investment sources on the territory of the Russian Federation. Thus, according to data from the information system GLOBAS-i® of CredInform Agency, there are 41,690 companies registered in Russia, that have foreign legal entities among their shareholders. 52% (47% in 2011) of such companies are maintained completely by foreign owners who hold 100% of company’s charter capital. Most of the companies with foreign financial investments are located in Moscow (56.1%), Saint Petersburg (10.8%), and the Moscow Region (6.9%). According to data from the information and analytical system GLOBAS-i®, the largest successful companies with 100% foreign capital are occupied in auto industry and adjacent productions (Toyota Motor LLC, Hyundai Motor CIS LLC, Kia Motors Rus LLC, Jaguar Land Rover LLC,  Ford Sollers Holding LLC, Nokian Tyres LLC, Volvo Cars LLC, Honda Motor Rus LLC, Bridgestone CIS LLC), in the sphere of electronics and household appliances (Samsung Electronics Rus Kaluga LLC, PHILIPS LLC, BSH Household appliances LLC, Libherr-Russland LLC), chemical industry (Henkel Rus LLC, Johnson & Johnson LLC), food industry (Coca-Cola HBC Eurasia LLC, Danon Industry LLC, Heineken Breweries LLC).

The flight of the capital abroad is a significant problem at the present time. The outflow of Russian capital is nominally divided into three streams. The first is illegal money transfers, which are usually hard to track. It is so called “shadow capital”, acquired through criminal activity.

The second part is - the profits earned legally, but flowing out of the country due unstable investment climate and investors' disbelief in perspectives of safe and efficient business in Russia. The Central Bank of Russia estimates that $57,9 billion (1,8 trillion rubles) were taken out of the country in January-September of 2012 ($80,5 billion and 2,5 trillion rubles in 2011 accordingly). The CredInform Agency experts suggest that the outflow in 2012 was over $67-80 billion. 

The third part of the outflow of Russian capital is an investment in foreign companies and business that stimulates promotion of Russian goods and services on the world market, creation of branch companies and other structures, which are engaged in advertising, information services, processing of raw materials and the semi-finished products delivered from Russia, and realization of the corresponding production. The amount of the investment in January-September of 2012 made up $109,4 billion (3,4 trillion rubles) that is 13% more than in the same period of 2011. 

The capital outflow is non-uniform, multicomponent, and it is difficult sometimes to draw a line between a reimbursement of loans to foreign banks and the actual capital flight. But the general rule of the investment market is if the money outflow is greater than the money inflow, then the investment climate within the country is not favorable for foreign investors. 

Among the main reasons of the unattractiveness of the investment climate in Russia are – corruption, as well as high administrative barriers, as well as lack of security of owner's rights. It should be noted that the improvement of investment climate in Russia will not just attract nonresidents, but also will stimulate activity of the Russian businessmen.

Article
Russian population spends 2% of its income on fruits and berries

Credinform Information Agency offers you a new analytical survey “Market of fresh fruits and berries in Russia”. According to the study, Russian population spends an average of 2% of income on consumption of fruits and berries. However, this figure varies depending on specific regions of the Russian Federation: minimum rate is common for the Central Federal District – 1.8%, maximum – for the North Caucasian Federal District. Therefore, Russians spend an average of 200-600 rubles for fruits and berries per month. And according to statistical data, the higher is the income of the population group, the less is this share.

What concerns price trends on the market of fresh fruits and berries, official statistics shows that the highest consumer prices in Russia are set for the grape. It costs for citizens an average of 120-140 rub. per kilo. The fruits with the lowest price are bananas – price per one kilo is 50 rubles.

Key features of pricing are seasonality and climatic conditions of various Russian regions. In the season of natural ageing of fruits, consumer prices usually fall down, and when only greenhouse or imported fruits remain on the market, the prices drastically rise. Experts from Credinform note that the most expensive fruits are sold in the Far Eastern Federal District. The cheapest are offered in the Volga and Southern Federal Districts.

Main Russian fruit producers are concentrated in the Southern and Volga Federal Districts due to climatic conditions. But if to look at their distribution pattern by revenue, the leaders – according to GLOBAS-i Information System – will be enterprises of the Southern and Central Federal Districts. The biggest farms manufacturing fruit-and-berry products are Sad-Gigant CJSC, Avangard LLC (Ryazan Region), Agrofirma imeni 15 Let Oktyabrya CJSC and Agronom OJSC (Krasnodar Territory). All mentioned enterprises are assigned with highest and high solvency index. This means that enterprises are able to repay debts timely and in full, and cooperation with these companies deems to be the most attractive from the point of view of profits earning and risk reduction.