Russian FDI to Fall 50% in 2014 on Risk, Institute Says

Foreign direct investment flows to Russia will fall to half of last year’s level in 2014 as the conflict with Ukraine prompts companies to delay expansion, the Vienna Institute for International Economic Studies said.

Russian FDI will fall to 30 billion euros ($41 billion) from 59.7 billion euros last year, the steepest decline in eastern Europe, the institute, also known as WIIW, said in an e-mailed report. Inflows to the 23 east European countries WIIW tracks will decline to 72.9 billion euros from last year’s 97.3 billion euros, the institute forecast.