Introduction

Russia is among the top five countries with foreign investments in the world. Russian businesses have invested especially in the neighboring countries. Russia is also an important target for foreign direct investment (FDI). American, Belgian, British, French, and German investments make up more than 90 percent of all FDI in Russia. Foreign investments contribute substantially to Russia’s total capital. In some years, foreign investments have accounted for as much as a third of the country’s total investments. Foreign banks finance businesses operating in Russia, and foreign businesses are building railways across the country, drilling oil, mining metals, and producing textiles and pharmaceuticals. The public’s dissatisfaction with the head of state and social movements have nevertheless increased, which raises the political risk for foreign businesses continuing their operations in Russia considerably.