Foreign direct investment (FDI) in Russia dropped sharply to $3.3 billion in 2024, marking its lowest level since 2001, according to new data from the United Nations Conference on Trade and Development (UNCTAD). The figures were released during Russia’s St. Petersburg International Economic Forum.
The report shows a 62.8% fall in foreign investment from 2023 to 2024. Compared to 2021, before the war in Ukraine began, FDI has halved—from $38.8 billion down to $3.3 billion. This steep decline reflects growing political and economic risks in the country.
Sergei Aleksashenko, a former deputy governor of the Russian Central Bank now living abroad, told Reuters that even if the war ended immediately, few serious investors would consider Russia attractive due to ongoing political risks.
The Central Bank of Russia confirms that foreign investment in non-financial sectors has dropped 57% over the past three years. Total accumulated FDI fell from $497.7 billion at the start of 2022 to $216 billion by January 2025—the lowest since 2009.
Analysts blame the decline partly on increased state seizures of private assets. More than a dozen foreign-owned businesses have been nationalized since the war began, including the recent takeover of Domodedovo Airport.
President Vladimir Putin recently warned Western tech companies still operating in Russia that those acting against the country’s interests should be “strangled.”
Aleksashenko said the situation with property rights in Russia is worsening daily, further discouraging foreign investors. UNCTAD’s report also highlights the sharp drop in 2022, when foreign firms withdrew a net $15.2 billion, driven by urgent capital repatriation following the invasion of Ukraine and international sanctions.
Related topics:
