China announced investment boycott
Turn Russia’s economic policy in the East, announced after the annexation of Crimea and the beginning of the sanctions war with the West are deadlocked.
Despite numerous calls from the Russian government, Chinese companies refuse to invest in the real sector of the Russian economy following Western business money.
In January-June, the total volume of foreign direct investment from China to the Russian Federation decreased by 24%, reported the Central Bank on Wednesday.
In the first six months, Chinese investors took 1,005 billion, and the total volume of investments fell to 3,184 billion.
Almost all of the outflow was related to the reduction of presence in Russia: 92% of the amount (921 million dollars) brought directly from the capital of Russian companies.
In General, China is expanding investment abroad: according to Commerce, in January-July, the Chinese company has invested 65 billion dollars in 4 thousand foreign enterprises in 152 countries and regions of the world, which is 14% more than last year.
But these funds did not get anything. According to the Central Bank, the outflow of Chinese investment going into the fourth quarter in a row, and their current volume is a third less than it was before the annexation of Crimea (4,542 billion dollars).
In the total structure of foreign investments in Russia, China accounts for less than 1%. And the total amount of investments in 49 times less than that of Cyprus (148 billion dollars) and 6 times less than Germany ($18 billion).
Major Russian-Chinese investment projects, which were announced with fanfare, yet ended in nothing. The idea to sell Chinese CEFC stake in Rosneft fell after the arrest of the head of the company Ye Janimine accused of economic crimes.
The high speed rail project “Eurasia” – from Beijing through Moscow to Berlin – was recognized as unprofitable.
The attempt of the Finance Ministry to enter the Chinese market and start borrowing in Renminbi also remains suspended in the air for more than four years. Release yanevych OFZ, which was originally planned for 2016 year, then postponed to 2017, has still not received final approval by Chinese authorities, said in October, Deputy Finance Minister Sergei Storchak.
The latest attempt to attract Chinese money was held in June, when President Vladimir Putin visited the summit of the Shanghai cooperation organization in Tsindao.
According to its results it was decided to prepare a feasibility study of a trade agreement with China, which should be the equivalent of Transtihokeanskomu partnerships. To prepare feasibility study is planned for 2.5 years, the timing of real investment is not clear.
A feasibility study is only the Memorandum, the Director of the research Center of international trade Ranhigs Alexander Knobel: these non-binding documents signed by officials annually to WEF for a few trillion rubles.
China is ready to invest in the Russian economy only under certain conditions and because of the sanctions will now be able to impose them on Moscow, says a senior researcher of the Gaidar Institute Yury Zaitsev.