Introduction to the Eurasian Economic Union by Evgeny Vinokurov

Author:Evgeny Vinokurov
Language: eng
Format: epub, pdf
ISBN: 9783319928258
Publisher: Springer International Publishing

2011

2012

2013

2014

2015

EAEU countries’ mutual FDI stock, $ billion

26.6

27.6

25.1

25.4

23.6

Incoming FDI stock in EAEU countries, $ billion

537.0

580.7

622.2

442.3

404.4

Sources: UNCTAD for the outside world’s incoming FDI; the “Monitoring of Mutual Investments in the CIS and Eurasia” project by EDB Centre for Integration Studies with respect to mutual FDI

In the coming years, we expect the structure of investment flows in the EAEU to experience a partial transformation. The main factor behind this transformation is the active development of relations within EAEU. The deepening of Eurasian integration in the EAEU and its single market provides new opportunities for business collaboration to investors in the “middle echelon”. The fact is that cross-border barriers are less painful for big business: they are effectively overcome with resources (e.g., the largest companies are represented on foreign investor councils that advise presidents). But companies in the “middle echelon” are limited in their money, administrative resources, and clout. The single market provides them with a wider range of opportunities to build value chains and simply scale up their business operations.

We assume that there is a significant potential for mutual investments in industries where cross-border investment activity is currently low: agriculture and food products, retail trade (food items and industrial goods), construction of commercial and residential real estate, tourism, and information technology . Given the EAEU’s relatively young age, we should not expect an immediate large-scale increase in FDI . Growth will happen when medium-sized enterprises go abroad. Based on the above data, we can speak of an emerging foundation of corporate relations.

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