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Foreigners Struck by Russian Bureaucracy, Corruption
The main argument for investment in a country has always been and will always be profit. Peter D. Hart Research Associates have confirmed this eternal truth once again in a report commissioned by a foreign investment consultation council. Forty percent of actual investors and 43 percent of potential investors named high profit as their main motivation for investing in Russia. The consumer market and mineral wealth were named by 27 and 12 percent of actual investors and 21 and 8 percent of potential investors, respectively.
The greatest difference of opinion was seen in the profitability of Russian investments. Of those already active in Russia, 52 percent of investors consider their Russian investments more profitable than those in other developing countries, while 17 percent considered them less profitable. Potential investors are considerably less optimistic about Russia. That is not surprising, considering that they will enter a more mature, and thus less risky and less profitable, market than their predecessors.
Russia's attempts to attract investors received generally low marks. Only 8 percent of actual and potential investors gave those efforts a positive evaluation. Forty-one percent of potential investors and 66 percent of real investors gave the lowest possible rating to those efforts. It was clear, however, what the government van do to improve the country's image. Sixty-five percent of respondents said corruption is the most negative factor in investor confidence. Bureaucracy ranked only slightly lower.
www.kommersant.com
All the Article in Russian as of Oct. 16, 2007
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Photo: Ildar Azyukov
