UK tops investment in Russia

29 Mar, 2008 02:41 / Updated 16 years ago

In 2007, the UK ploughed $US 26.3 BLN into Russia and, for the second year in a row, became Russia’s largest foreign investor. It seems that the complex political relationship between the two countries is not deterring British investors from pumping their

“I think the investors including British investors look very closely at the Russian economy and its outstanding performance in previous years and they like the GDP numbers, they like the macro economic stability, they like the government's macro economic policies. They look at that, they look at the numbers and they invest,” Stefan Wagstyl, Financial Times Central and East Europe Editor, said. Trade is growing at a rate of 25% a year and over 400 UK companies now operate in Russia. Analysts have identified the most promising areas for long-term activity in Russia: aerospace, airports, financial services, engineering, power and of course, oil and gas. Many agree that politicians on both sides aren't exactly helping the cause, but there is hope for a warmer political climate.