Companies reappraise their projects in the CIS countries, but not leave them. This is stated in the report "Monitoring of mutual investments in CIS countries 2016" of the Eurasian Development Bank (EDB).
It is noted that the volume of mutual investments in the CIS and EEU has declined. The main reason - the devaluation of national currencies and the corresponding revaluation of assets. At the same time companies hold onto projects abroad, hoping for better times and without selling the assets for trifling sum.
The decline in income of foreign direct investment (FDI) for the year was $2.2 billion, or 5 percent.
The role of mutual FDI of the Eurasian Economic Union countries is growing. Their share in the CIS region grew from 47 percent in 2008 to 56 percent in 2016. The total stock of FDI in the CIS countries amounted to $23.7 billion.
Russian investors have carried out almost 80 percent of mutual FDI in the CIS countries. In second place - Kazakhstan (11.6 percent). The proportion of non-domestic direct investment is slowly but surely increasing. This is due to the gradual internationalization of the business in the CIS countries, previously lagged behind Russia.
In Armenia, Kyrgyzstan and Tajikistan recorded a slight increase in revenues in foreign direct investment from Russia.
The devaluation of the national currencies of the CIS countries in particular has a negative impact on the volume of accumulated Russian investments. The greatest decrease in its volume last year was in Kazakhstan (19 percent) and Belarus (2.4 percent).
"In the coming years, the structure of investment flows in the post-Soviet space will be largely determined by the integration processes within the framework of the EEU. The emergence of real job opportunities on the common market of the Eurasian Union could qualitatively change the picture of cross-border investments," the report says.