On German direct investment in Russian economy

This article deals with the problem of direct German investment in the Russian economy. The author concentrates on the special role of German capital and the need for it in the framework of a longterm mutually beneficial cooperation. On the one hand, there is a high potential for cooperation between Russia and Germany, and today German companies are one of the most consistent direct investors on the Russian markets. On the other hand, the actual numbers do not correspond to the possibilities and a potential of German investors. To some extent it’s due to an overestimation of commercial and noncommercial risks of potential investment projects according to German partners and a lack of awareness of German investors about the real situation in Russia and its regions. The author provides an overview of factors that ensure a high potential of investment cooperation between Russia and Germany. The problems that German investors face in the Russian market and ways of their solving are considered in the paper. In the author’s opinion unbiased reporting at the federal and regional levels, as well as opportunities for direct investment in Russia play a great role. One of the most effective solutions to this problem is the intensification of scientific cooperation between Russia and Germany in the field of investment studies. This measure would allow the Russian entrepreneurs to better understand the problems of German investors for further development of problem solutions, and the German colleagues would have a true and fair view on the investment climate in the Russian Federation.