Report: Foreign Direct Investment between the EU and EAEU

_ IIASA. Laxenburg, 03 June 2018. 

Balás P., Havlik P., Cielava E., Stepanova A., Komendantova N., Zaytsev Y., Knobel A. Foreign Direct Investment between the EU and EAEU. IIASA. Laxenburg. 2018. – 138 p. 


The research on foreign direct investments highlights that investment flows between the EU and Russia, as well as other EAEU member countries, used to be among the most important areas of East-West economic relations. However, in the recent years, the Ukrainian crisis, mutual sanctions, currency fluctuations, and a slow regional growth in the post-Soviet space, along with the fall in trade of goods and services, have led to a steep decline in the FDI flows, particularly in case of Russia. Having analyzed investment flows between Europe and the EAEU member countries, as well as the political and economic factors that affect them, the IIASA research team has come up with both short- and long-term policy recommendations on how to stabilize existing foreign capital investment and ensure its growth in the future. These include, among others, the adherence to already accepted international commitments and disciplines, streamlining and simplifying administrative procedures, a gradual opening of government procurement for foreign-owned companies, and, of course, more transparency.

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