Russia wealth fund predicts rise in foreign investments

Moscow — Russia could see a big increase in foreign investment next year as investors think there is a chance the conflict in Ukraine could be resolved, the head of Russia’s sovereign wealth fund said on Wednesday.

“The year 2025 could be a year of significant increase in foreign investments in Russia. Investors see prospects for the resolution of the conflict in Ukraine,” Kirill Dmitriev, head of the Russian Direct Investment Fund (RDIF), said on the sidelines of an investment conference in Moscow.

“They expect that not only countries of the Global South will continue to increase their investments in Russia, but also Western companies will hurry to regain their lost positions in the Russian market,” he said.

Dmitriev’s job involves making the case that Russia is a sound investment prospect. He did not name any specific Western companies that might be seeking to return to Russia.

Western firms have exited Russia in droves since the start of the war in Ukraine, often on highly unfavourable terms.

Danish brewer Carlsberg is set to sell Russian assets that Moscow seized in July 2023 at a significant discount, a document seen by Reuters showed on Tuesday.

Dmitriev also praised the pragmatism of US president-elect Donald Trump who said during campaigning that he could bring peace in Ukraine within 24 hours if elected, without giving specifics.

“The pragmatism of the Trump administration gives hope for the restoration of the global security system, which could become a catalyst for the renewal of global economic co-operation and the strengthening of trust between countries,” said Dmitriev, a former Goldman Sachs banker who has previously had contact with the Trump team.

Reuters