Foreign investors invested $20.9 billion in acquiring assets in Russia last year, which is almost 50% higher than in 2018. These statistics were demonstrated by the KPMG report on the M&A market.
The total amount of M&A transactions grew by 21.5% – up to $63 billion.
Thus, 2019 was the most successful in terms of investment activity since 2014 (the beginning of the introduction of EU and US sanctions on Russia).
However, the largest growth in investments among foreign investors in 2019 was shown by companies and funds from the countries of the Asia-Pacific region – an increase of up to $8.2 billion against $2.4 billion in 2018. The volume of investments from the USA has also grown significantly – up to $3.4 billion against $0.2 billion the previous year. European companies reduced their investments to $2.6 from $5.9 billion a year earlier.
Despite significant growth, the total size of the Russian market in 2019 amounted to just over 1% of the global M&A market.
A third of the total M&A market amounted to transactions in the oil and gas sector. In particular, these are LNG projects from Novatek, whose partners in the Arctic LNG 2 project became the Chinese CNODC and Japanese Japan Oil (together with Mitsui), as well as the projects of the state-owned Gazprom, one of whose partners became an Austrian OMV.