The Russian Federation jumps to third in global FDI ranking – for the first time ever

Transition economies experienced a significant 45% rise in FDI inflows, reaching a record level
– an estimated US$126 billion. FDI inflows to the Russian Federation jumped by 83% to US$94 billion
making it the world's third largest recipient of FDI for the first time ever (figure 5). The rise was
predominantly ascribed to the large acquisition by BP (United Kingdom) of 18.5% of Rosneft (Russia
Federation) as part of Rosneft's US$57 billion acquisition of TNK-BP, which is owned by a company
registered in the British Virgin Islands. FDI in the Russian Federation is expected to keep pace with its
2013 performance as the Russian Government's Direct Investment Fund – a US$10 billion fund to
promote FDI in the country – has been very actively deployed in collaboration with foreign partners, for
example funding a deal with Abu Dhabi’s Finance Department to invest up to US$5 billion in Russian
infrastructure.

Link:
http://unctad.org/en/PublicationsLibrary/webdiaeia2014d1_en.pdf

(Pages 6,7)



From 9-th place straight to the 3-rd. Excellent enhancement.

 

I am by no means an expert, but if they're counting BP's "acquisition" of 18.5% of Rosneft which was actually a part of Rosneft's acquisition of TNK-BP, isn't that really Rosneft making the investment, not BP?

 

IIRC, TNK-BP was a joint venture, Rosneft sorta traided part of it's shares for BP's 50% share in TNK-BP.
Oh, here you go:
BP received 12.48 billion dollars of cash (including dividends in the amount of 0.71 billion U.S. dollars, received in December 2012) in cash and 18.5% of the shares of "Rosneft".
"Rosneft" has acquired a 50 percent stake of BP in TNK-BP in exchange for U.S. $ 16.65 billion in cash and 12.84% of the shares of "Rosneft";
BP acquired 5.66% of the shares of "Rosneft" from OAO "ROSNEFTEGAZ" for U.S. $ 4.87 billion;

Buying share in a company is an investment.

When BP bought share in Rosneft, it made an investment to Russian economy.
When Rosneft bought share in TNK-BP, it made an investment to British Virgin Islands' economy. (Though, I am not sure about TNK-BP current status).

 

OK, but BP's investment was really Rosneft's investment, no? BP essentially traded interest in one company for interest in another.

 

Yep. Need to look at the cost of Rosneft and TNK-BP and their legal status to find out how the capital moved in the end. Though, I am not an expert myself.