DIRECT FOREIGN INVESTMENT IN THE RUSSIAN FUEL AND ENERGY COMPLEX: THE CHALLENGE OF 2014

10.12737/7722 ◽  
2014 ◽  
Vol 9 (4) ◽  
pp. 5-8
Author(s):  
Абдулмуталибов ◽  
Ragim Abdulmutalibov
Keyword(s):  
Foreign Investment ◽  
High Efficiency ◽  
Raw Materials ◽  
Direct Foreign Investment ◽  
State Regulation ◽  
Energy Industry ◽  
Negative Consequences ◽  
Foreign Investments ◽  
Investment Activity ◽  
Economies In Transition

In conditions when against the Russian Federation economic sanctions are imposed, it is especially important to intensify work on attraction of investments and counteraction to outflow of the capital from the country. The energy industry as the turbulent situation with presence of such giants as Exxon Mobil Corporation in Russia showed, the unprecedented contract with the Chinese party on construction of the Force of Siberia gas pipeline, cooperation with French "Total", remains to one of the most investment and attractive branches of economy cooperation in which has strategic and long-term character. In present difficult conditions for realization of policy of attraction and deduction of investments into the Russian energy industry it is obviously necessary to pay attention, first of all, to effective use of instruments of state regulation. Considering strategic character of energy industry for Russia and importance of high efficiency, the attracted investments for domestic economy, it is necessary to provide as it was told above, balance of interests of the state and the attracted investors. Increase of efficiency of state regulation of foreign investment and investment activity in energy industry has to consider two macroeconomic conditions. In - the first, this creation of the friendly environment for the investor who came to fuel and raw sector of a national economy of the country guaranteeing protection of interests and minimizing risks of the investor. Secondly, it is necessary to displace emphasis on investment into adjacent sectors of energy industry. It is reached by interindustry transfer of investments (capital) on the enterprises occupied with profound processing of initial natural raw materials on the one hand and also in productions which provide organizational and technical, logistic and material deliveries of products for fuel and raw spheres on the other hand. The country with economies in transition accepting foreign investments is faced by an important task to define an optimum ratio of the foreign and national capital which will allow to accelerate its development and to avoid negative consequences of foreign investment. Need to control inflow of the foreign capital to the country is obvious, and for effective management of economy it is necessary to improve important legislative base, to create system of monitoring of direct foreign investments in which the branch and regional orientation of direct foreign investments has to be analyzed. Performance and observance of these conditions will demand a complex of regulatory measures, development and which acceptance depends on harmonious cooperation and actions of the external economic, antimonopoly and tax administration of the Russian state.

scholarly journals Legislation on direct foreign investment in the Russian Federation and the United States: comparative-legal analysis

2020 ◽  
pp. 61-73
Author(s):  
Yuliya Mikhailovna Kudryashova
Keyword(s):  
United States ◽  
Russian Federation ◽  
Foreign Investment ◽  
Direct Foreign Investment ◽  
The United States ◽  
Practical Implementation ◽  
Legal Analysis ◽  
Foreign Investments ◽  
Investment Activity ◽  
The Russian Federation

This article analyzes the investment legislation of the Russian Federation and the United States. The subject of this research is the specific normative legal acts regulating direct foreign investments in the indicated countries, while the object is the relations emerging in the process of foreign investment activity.  The author provides the examples of various factors in the area of foreign investment for the purpose of their comparison and determination of specificity of their practical implementation. The reference to doctrinal sources allowed to clearer explain the author’s position of the topic. The scientific novelty and relevance of this work are substantiated by examination of investment activity, which greatly impacts the economy of modern countries. The author’s special contribution lies in studying the experience of U. S. legislation with regards to direct foreign investments. The main conclusion consists in the fact that both jurisdictions have a well-developed mechanism for regulating investment relations, as well as both countries feature a number of restrictions that can face a foreign investor. The need for improvement of Russian legislation is underlined. The acquired results can be used in legislative and expert activity, as well as in further theoretical-legal research.

scholarly journals Current Problems of State Regulation of Foreign Investment into Ukraine: Economic and Legal Aspect

2020 ◽  
pp. 140-150
Author(s):  
Roman HRYTSKO ◽  
Halyna HRYNYSHYN
Keyword(s):  
Foreign Investment ◽  
Structural Changes ◽  
Legal Aspect ◽  
Legal Regulation ◽  
State Regulation ◽  
Foreign Direct Investments ◽  
Foreign Investments ◽  
Investment Activity ◽  
State Management

The conditions and main shortcomings of state regulation of foreign investments are studied. The importance of attracting foreign investment for the successful development of Ukraine as an independent, democratic, social and legal state is substantiated. The categorical apparatus of the terms «investments» and «foreign investments» from the point of view of economy and law is revealed. The existing classification of investments is considered, modern forms of foreign investments are characterized. The assessment of foreign investment inflows in the dynamics and in terms of areas of economic activity is conducted. Ukraine's place in the international rankings is presented, which testifies the improvement of the investment climate and the growth of investment attractiveness of both the country as whole and business entities on their own. The main national and international legal acts regulating investment activity are described. The bodies of state management of foreign investments at the macro level are identified, instruments of state regulation of foreign investment are systematized (tax and customs benefits, subsidies, dotations and subventions, application of accelerated depreciation, mechanism of public-private partnership, state and local guarantees, licensing of certain economic activities, granting loans on favorable terms, etc.). The thesis is substantiated that the indicators of investment activity (in particular the indicator of the volume of attracted investments) are not only an indicator of economic development of a country or region, but are a criteria that evaluates the effectiveness of government activities in investing. In order to harmonize the Ukrainian investment legislation, a system of measures has been proposed that will promote structural changes in the investment sphere and stimulate the attraction of foreign investment in the country. Further improvement of legal regulation of foreign investment will increase the welfare of the state, provide favorable conditions and state guarantees, which will provide the establishment of appropriate organizational and legal norms of investment. Keywords: investments, foreign investments, capital investments, classification of investments, foreign direct investments, portfolio foreign investments, state regulation, instruments of state regulation of foreign investment inflows.

Legislation on Foreign Investments and Practice of Investment Dispute Resolution

2016 ◽  
Vol 4 (4) ◽  
pp. 0-0
Author(s):  
Stanislav Borodkin
Keyword(s):  
Foreign Investment ◽  
Ad Hoc ◽  
Foreign Investments ◽  
Sovereign Immunity ◽  
Investment Activity ◽  
International Treaty ◽  
National Courts ◽  
Doing Business ◽  
Definition Of

Russian companies doing business outside of the Russian Federation require special protection of their rights and lawful interests. Several methods of protecting foreign investor rights are available under the international law, including national courts and tribunals and commercial arbitrations (both institutionary and ad-hoc). International Center for Settlement of Investment Disputes is a special institution established to resolve the controversies related to foreign investments. It was created under an international treaty and its decisions are not subject to sovereign immunity. The article considers ICSID practice regarding the definition of an investment, since disputes are related to an investment activity, which is a topical question when dealing with the determination of the Center competence. While the analyzed cases do not have the power of binding precedents, when the arbiters elaborate on the definition of a foreign investment they use specific criteria that could be relevant for the national law. Since international practice has a more specific definition of foreign investments than the Russian law, the author suggests that the former be taken into consideration when a foreign investment is defined in Russian legal texts. It could ensure better protection of the rights of Russian legal entities abroad.

Business arrangements used by U.S. wood-based companies involved in direct foreign investment

1991 ◽  
Vol 67 (2) ◽  
pp. 141-144 ◽  
Author(s):  
Edward M. Bilek ◽  
Paul V. Ellefson
Keyword(s):  
Foreign Investment ◽  
Financial Burden ◽  
Direct Foreign Investment ◽  
Developed Countries ◽  
Significant Preference ◽  
Foreign Investments ◽  
World Markets ◽  
The World ◽  
Political Conditions

Two hundred foreign investments (wholly-owned subsidiaries and joint ventures) were identified for 12 of the nation's 1981 top 20 sales-leading transnational wood-based companies. Investments were scattered over much of the world with a significant preference for developed countries (135 of the 200 foreign investments). Company executives agreed that the ability to compete in world markets would be key to a company's long-term success. Only three companies indicated foreign investments were of growing importance. Factors influencing company decisions about type of foreign investment included length of investment, developed versus developing country, social and political conditions in host country, foreign pressure to reduce equity, control of profit remittances and share of financial burden.

scholarly journals Administrative and Legal Principles of Foreign Investment in Ukraine

2019 ◽  
Vol 85 (2) ◽  
pp. 78-86
Author(s):  
H. O. Fedorov
Keyword(s):  
Foreign Investment ◽  
Local Level ◽  
Investment Project ◽  
Legal Regulation ◽  
Foreign Investments ◽  
Investment Activity ◽  
Legal Principles ◽  
Investment Promotion ◽  
Definition Of

The peculiarities of administrative and legal principles of foreign investment from the point of view of complex analysis have been considered, considering the current stage of historical development of the state system. Taking into account doctrinal research and own scientific achievements, it has been determined that nowadays it is extremely urgent to implement the whole set of practical measures aimed at achieving qualitative changes in the issues of attracting foreign investment and strengthening the control over the quality level of investments in the economy of Ukraine from the standpoint of administrative and legal principles. It has been determined and proved that it is expedient to apply the phased approach of administrative and legal regulation of foreign investment – two-step assessment of the quality of foreign investments. In particular, the investor should be evaluated at the first step. This means that the purpose and goals of his investment activity, as well as his investment, business and economic reputation must be assessed. The second stage begins with the evaluation of the investment project, the priority for the economic development of the territorial community, the level of innovation, environmental compatibility, payback period, value of investments, etc. The basis for this approach should be the system for evaluating the quality of the subjects and objects of the investment process. The result of applying this approach should be the definition of the quality of the investment project and definition of the priority for its implementation in accordance with territorial interests. In this regard, it would be appropriate to make a clear distinction between the functions and responsibilities of the institutions that are going to assess the quality of the investments. According to the author, it would be rational to expand the main directions of activity of the Ukrainian Center for Foreign Investment Promotion and to create a special department that would deal with the quality control over the relevant foreign investments coming to the Ukrainian economy. The same structures should be formed at the local level.

scholarly journals Statistical analysis of geographical structure foreign direct investment in Ukraine

2021 ◽  
pp. 160
Author(s):  
Vadym Maslii ◽  
Sviatoslav Pytel
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
The United States ◽  
The European Union ◽  
Negative Consequences ◽  
Investment Activity ◽  
Financial Flows ◽  
Geographical Structure

Introduction. Foreign direct investment occupies a significant place  in financial flows and creates tools through which stable and long-term ties between countries are formed. Investment flows, which are both balanced and geographically and conjunctively disproportionate, can have positive and negative consequences for the host country’s economy. Particular attention should be paid to the qualitative parameters of the foreign investment process, which include the country of origin of investments, that is, their geographical location.Purpose. The purpose of the article is a comprehensive study of the geographical structure of foreign direct investment in Ukraine throughout the time-period of our country’s existence as an independent participant in the process of foreign investment.Method (methodology). In the process of researching the selected topic, the following methods were used: monographic – in order to study the results of existing analytical research, the object of which is the process of foreign investment in Ukraine and its aspect as the geographical structure of foreign investments is investigated; method of calculating the relative values of the structure – for the research of the geographical structure of foreign direct investment in Ukraine, which made it possible to abstract from a specific numerical expression of the volume of parts of the population; tabular – for submission of analytical information about the object of research; graphic – for visual presentation of the obtained statistical data on the geographical structure of foreign direct investment in Ukraine. Results. International investment activity has a significant impact on the geographical structure of FDI in Ukraine. During the study period (1995 - the end of 2019) the main investors were European countries. They exported to Ukraine annually about 50 % of the total invested capital, and in 2006-2011s, this figure reached 70 %. Investments from the European Union play a crucial role in Ukraine’s foreign direct investment process.According to the research, over the past 25 years there have been significant transformations in the territorial geographical structure of FDI in Ukraine. First of all, the number of investor countries has increased and the role of leaders, such as the United States, Germany, and the United Kingdom, has decreased. The role of investments from offshore countries and countries equated to them, such as Cyprus, Belize, the Bahamas, the British Virgin Islands, the Netherlands and others, has significantly increased. If in early 1995 the share of investments from these countries was about 11%, then at the beginning of 1998 this figure was 20 %, at the beginning of 2008 - 33%, at the beginning of 2011 – 51 %, and at the end of 2019 - 60 % respectively. It should be noted that there is no significant investment from South America, such as Brazil, Mexico and Venezuela, the industrialized countries of East and Southeast Asia and China, which is one of the 10 leading countries in the world. In this direction, promising investment cooperation should be expanded by concluding investment agreements taking into account the interests of future investors.Perspectives. In our opinion, promising in the future are studies of sectoral and territorial structure of FDI in terms of the largest countries of investors, assessment of their impact on the economic development of Ukraine in order to make effective management decisions in attracting foreign investors.

scholarly journals Features of state regulation of exports in developing countries and their modernization

2021 ◽  
Vol 258 ◽  
pp. 05038
Author(s):  
Antonina Sharkova ◽  
Irina Sycheva
Keyword(s):  
Developing Countries ◽  
Transition Economy ◽  
Raw Materials ◽  
State Regulation ◽  
Raw Material ◽  
Optimal Model ◽  
African Countries ◽  
Economies In Transition ◽  
First Time ◽  
Russian Model

The article describes the features of state influence in the export of coffee from Africa, affecting the international trade in raw materials. The example of coffee market is analyzed in the article. The world experience of regulating the flow of goods from a country with a transition economy is analyzed and its adaptation to developing countries is evaluated. The problem of this industry is expressed in the fact that after centuries, African countries have not been able to develop an optimal model for regulating coffee exports in the context of the formation of raw material prices on international exchanges. The purpose of the study is to assess the possibility of adapting on the African continent the Russian model of state support for exports, which is a system of a number of institutions focused on the implementation of subsidy programs through administrative and tax measures. The scientific novelty is that, for the first time, two models of state regulation of developing countries and countries with economies in transition are correlated in order to modernize the African export support system.

Attraction of Direct Foreign Investments As a Factor of Sustainable Development

2020 ◽  
Vol 9 (3) ◽  
pp. 4-9
Author(s):  
E. Rusak
Keyword(s):  
Sustainable Development ◽  
Foreign Investment ◽  
Direct Investment ◽  
Direct Foreign Investment ◽  
High Tech ◽  
Investment Climate ◽  
Foreign Investments ◽  
State Investment ◽  
The Republic ◽  
Economic Zones

The article analyzes the instruments of state investment policy in the Republic of Belarus to attract foreign direct investment in the interests of sustainable development. Particular attention is paid to the creation of special preferential regimes in the Sino-Belarusian Industrial Park "Great Stone", the Belarusian High-Tech Park, free economic zones. An assessment of the effectiveness of stimulating direct foreign investment is given, the position of Belarus, Russia and other EAEU member countries in the leading world investment ratings is presented. The proposals on improving the investment climate in the Republic of Belarus to achieve the goals of sustainable development are justified.

scholarly journals FOREIGN INVESTMENT OF UKRAINIAN BUSINESS

2021 ◽  
Vol 2021 (1) ◽  
Author(s):  
L. Khomutenko ◽  
Y. Zhorova
Keyword(s):  
Economic Development ◽  
Foreign Investment ◽  
Comparative Method ◽  
State Level ◽  
Welfare Economic ◽  
Investment Climate ◽  
Foreign Investments ◽  
Investment Activity ◽  
Stage Of Development ◽  
The World

At the present stage of development of the world economy, an important and urgent issue is the development of investment activity, attraction and use of foreign investments. Almost all countries of the world focus their efforts on increasing the investment attractiveness of foreign investments and increasing their volume in the national economy. Ukraine's investment attractiveness is one of the most important elements on which the country's welfare, economic development, production, enterprises and business are based. The need to attract foreign investment is met by a decrease in investment activity of domestic companies, the need for technical and technological modernization of production and the entire market infrastructure, the need to introduce new management methods in management. Therefore, since the issue of foreign investment is important for the economic development of our country, the need to study and research the main types and forms of foreign investment is very relevant. The purpose of the qualification work is to study foreign investment in Ukraine, as well as trends and promising areas for improvement. In the process of research, depending on the goals and objectives, appropriate methods of research of economic processes were used, including systematization and generalization (with theoretical substantiation - the concept of investment process), comparative method (with dynamics of foreign investment), method of quantitative analysis, methods of induction and deduction. According to the results of the study, the following conclusions were drawn: At the state level, it is necessary to continue to take a set of measures to stimulate investment processes in the economy of Ukraine, and thus it will help to attract investment by Ukrainian enterprises in conditions of economic instability. Improving the legislative and organizational framework to increase the capacity of mechanisms to ensure a favorable investment climate and forming a basis for maintaining and increasing the competitiveness of the domestic economy is an urgent issue for further improvement of the investment climate in Ukraine A study of the main obstacles to foreign investment in Ukraine has shown that the country's judiciary ranks first, corruption second, and market monopolization and seizure of power by oligarchs third. In addition, investment returns in the years before and during the pandemic were compared. The obtained results can be used in the development process strategies of foreign economic development of Ukraine and evaluation of efficiency conducting policy in the field of currency regulation.

scholarly journals PECULIARITIES OF PERSONNEL MANAGEMENT SYSTEM OF ENTERPRISE WITH FOREIGN CAPITAL

2018 ◽  
pp. 91-94
Author(s):  
Zoriana Pushkar ◽  
Bohdan Pushkar
Keyword(s):  
Personnel Management ◽  
Management System ◽  
Raw Materials ◽  
Infrastructure Development ◽  
Foreign Investments ◽  
Investment Activity ◽  
Legislative Framework ◽  
Motivational Mechanism ◽  
Personnel Management System ◽  
The Impact

The article describes the features of the personnel management system at the enterprise and the impact of foreign investments on its activities. The advantages (introduction of modern technologies, raising the level of qualification of labor force and employment, increasing the level of integrated use of raw materials) and the drawbacks of attracting foreign investments for enterprises of Ukraine are noted. There are a number of signs that negatively affect the functioning of enterprises (war, political instability, imperfect legislative framework on foreign investment, insufficient level of infrastructure development, inflation processes, etc.). An analysis of the modern state of investment activity is carried out on the example of the German company "Kromberg and Schubert Ukraine". The key to the success of the enterprise, its main values, requirements, which sets the guidance to the personnel are revealed. The motivational mechanism that exists at the enterprise is analyzed, the working conditions of the personnel are disclosed. The scientific novelty of this publication is the assessment of the personnel management system and the development of proposals that need to be taken into account in order to improve the management of the personnel and the investment attractiveness of other enterprises of the state and its regions.

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