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Foreign direct investment in Russia to be at $45-50 bln per year

Foreign direct investment in Russia will be at the level of $45-50 billion per year in the next three years, Russian Finance Minister Alexei Kudrin said on Sunday.

“In the next three years, we expect foreign direct investment in the Russian economy at $45-50 billion. If we build up stability in our economy, the same volume can be expected in the long-term perspective,” Kudrin told journalists. Kudrin, who is attending a G20 meeting of central bankers and finance ministers in South Africa, said already this year foreign direct investment in Russia will total about 2.7% of Russia GDP, which corresponds to China’s FDI level.

Yaroslav Lisovolik, the chief economist of Deutsche Bank in Russia, earlier said foreign direct investment in Russia could almost double, year on year, in 2007 to $50 billion. The Russian finance minister also said net capital inflow in Russia could reach $80 billion in 2007 compared with the initial figure of $70 billion. According to Russia’s Finance Ministry, foreign direct investment in Russia totaled $26.2 billion in 2006. The ministry’s initial forecast projected foreign direct investment to reach $30 billion in 2007 and $39 billion in 2008.