ECONOMY

FDI drops as crisis takes toll

Russia’s foreign direct investment plummeted at an annual pace of 45 percent, the most on record, to $6.1 billion in the first six months of the year as the economy of the world’s biggest energy producer contracted at a record pace. The Netherlands was the largest foreign investor in Russia, followed by Cyprus and Luxembourg. The US was the eighth-biggest investor. Bank of Cyprus is among the island’s businesses that have expanded into Russia, buying last year a majority stake in Uniastrum Bank, Russia’s ninth-largest lender. Overall foreign investment in Russia, including credits and flows into the securities markets, was $32.2 billion, 30.9 percent less compared with the same period a year ago, according to the Moscow-based Federal Statistics Service. «Though assets are cheaper, the fact that FDI is falling sharply means that companies aren’t rushing to use this drop in price,» Natalia Orlova, chief economist at Alfa Bank in Moscow, said. (Bloomberg, Kathimerini)