Investment Effects of Integration of Belarus and Russia Within the Framework of the Eurasian Economic UNION

Prasniakova E.V.


The article examines the influence of integration processes within the Eurasian Economic Union on the inflow of Russian direct investments to Belarus, taking into account the foreign trade relations between the countries. Regarding the dynamics of mutual investments, the author shows that their volume has decreased in comparison to the initial stages of the EEU. It is noted that the increase in the share of mutual investments in the structure stems from a decrease in the volume of direct investments from third countries. The dependence of the Belarusian economy on the investment flows from the Russian Federation manifests itself in the high share of accumulated Russian direct investment in the total volume of foreign direct investment. The text provides an assessment of the relationship between the inflow of Russian FDI and the import of investment, intermediate and consumer goods from Russia to Belarus. At that, taken into account was the presence or absence of integration processes in particular years. The strongest dependence is between the inflow of FDI from Russia as a partnership country and the import of Russian investment goods to Belarus. Also, the inflow of FDI to Belarus from Russia is facilitated by the organization of joint production of imported intermediate goods (excepting energy) with Russian enterprises. The interest of Russian investors in the setting consumer goods production facilities on the territory of Belarus as well as goods the production of which does not require intermediate components of Belarusian origin, is the least visible correlation under the conditions of economic integration. The directions for stimulating mutual investments in the context of the development of Eurasian economic integration have been suggested in accordance with the Declaration on the further development of integration processes within the EEU. Among these areas is the maximum reduction in withdrawals and restrictions on the free movement of capital; support and development of the potential of the existing preferential investment regimes in the EEU member states; wider use of the potential of international financial development institutions; formation of centers of excellence for the development of medium- and high-tech as well as fundamentally new industries, etc.


mutual investments; direct foreign investments; integration; the Eurasian Economic Union; mutual trade; investment goods; value chains; industrial collaboration.

DOI: 10.31249/rsm/2020.04.07

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