Russian regions show growing investment attractiveness for the first time in 5 years

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November 25 , 2017 – Fort Russ News – 

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KtovKurse – translated by Inessa Sinchougova

The National Rating Agency (NRA) has conducted a study on the investment attractiveness of the Russian regions, announcing a marked improvement in the position of 22 Russian entities, which was a breakthrough finding for the first time in the five-year history of this study.

The highest rating (IC1) was traditionally received by Moscow and St. Petersburg (financial sector and retail.) The second group with high business attractiveness (IC2) included Tatarstan, Moscow region,  Belgorod regions, as well as the Yamalo-Nenets Autonomous District and Sakhalin, in which large oil and gas projects take place – Yamal LNG, development of the Neptune deposit and expansion of Sakhalin-2.

A significant breakthrough was made by Voronezh, Nizhny Novgorod, Tula region, Primorsky Krai. As indicated in the study, the main reasons for the regions’ improvement were institutional changes in business conditions, infrastructure development and the implementation of development projects.

It is noted that the subjects of the first three rating categories (IC1, IC2 and IC3) account for 86% of all investments in Russia.

Regions-outsiders are the Caucasian republics, Tyva and Kalmykia – they are in the last, the ninth place, which is the group that has been shown a lag in business investment since the 1990s, although they have the potential for growth.

The NRA assesses the investment attractiveness of the regions by key parameters such as budget sustainability, institutional environment, production values, development of the internal market and infrastructure, labor and natural resources availability.

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