Tengrinews.kz EDB: Mutual direct investment in the CIS falls by 12%

According to EDB, the main factor behind the reduction in all mutual investment in the CIS was the unstable economic and political situation in Ukraine. At the same time, while overall investment activity in the CIS has shrunk, the Eurasian Economic Union (EEU) demonstrated stability. Even despite the devaluation of national currencies, mutual investment in the EEU in 2014 increased from US $24.8 billion to US $25.1 billion.

According to Monitoring of Mutual Investments in the CIS 2015, a report published by the EDB Centre for Integration Studies, the positive investment dynamics in the EEU was due to the advancement and strengthening of integration cooperation. Russia is reported to remain the largest investor, accounting for 84% of mutual FDI in the CIS and Georgia. The second largest player is Kazakhstan, which accounts for 9% of exported and 20% of imported mutual investment. The top five countries also include Ukraine, Belarus and

Azerbaijan. The researchers point out that there was no massive withdrawal of Russian investors from Ukraine in 2014.

According to the report, the structure of investment flows in the near years will change. The main causes for this will be the unstable situation in Ukraine and, accordingly, the decrease in the share of investors from other CIS countries in its economy, and the active development of mutual linkages in the EEU.