Russian Capital Abroad

After 2022, Russian business significantly changed the geography of its foreign presence. Where previously a substantial portion of investments and production ties were concentrated in European markets, today the main directions of industrial cooperation have shifted to EAEU countries, Central Asia, and Asia. This involves not only new sales markets, but also the creation of production chains—from supplies of raw materials and components to the output of finished products.

Kazakhstan: one of Russia's key directions for industrial cooperation

Today the industrial cooperation portfolio includes 177 joint projects with a total value of around $53 billion. Of these, 122 projects have already been implemented, while another 55 are at various stages of preparation or construction. In terms of completed projects, this represents about 70%, however the bulk of investments falls on large initiatives that have not yet been fully realized. The total volume of projects under implementation exceeds $30 billion.

One of the most notable examples is the development of the petrochemical industry. Together with SIBUR, a project to produce polypropylene was implemented in Kazakhstan based on the Kazakhstan Petrochemical Industries complex. The facility became the largest production of this type in Central Asia with a design capacity of around 500,000 tons of output per year.

Another example of Russian-Kazakh cooperation in the oil and gas sector is the Kalamkas-More—Khazar project with participation from Russian company Lukoil and national company KazMunaiGaz. Initially the project was considered one of the largest joint projects in the oil and gas industry with an investment volume of over $6 billion. However, its implementation was suspended after the introduction of U.S. sanctions against Lukoil. Currently the parties are considering possible options for continuing the project taking into account the changed external conditions.

Mechanical engineering plays an important role in Russian-Kazakh industrial cooperation. Kazakhstan is viewed by Russian companies as a platform for locating production facilities oriented not only toward the local market, but also toward the entire EAEU space. One example is the automotive industry: the country is localizing production of components. Railway equipment manufacturing is also actively developing: Kazakhstan has around 16,000 km of railway tracks, and joint ventures produce locomotives, railcars, and equipment for transport infrastructure.

Then there's metallurgy. Kazakhstan possesses a significant resource base: the country ranks among world leaders in uranium reserves and holds major positions in chromium, copper, and zinc extraction. For example, Kazakhstan accounts for around 40% of global uranium production, while the country's copper industry remains one of the key sources of raw materials for the region. Russian technologies and equipment are used in metal processing projects, including copper and non-ferrous metallurgy. 

The development of such projects is explained by several factors:

1. Geography. Russia and Kazakhstan share a border stretching around 7,500 kilometers, which makes transportation of raw materials, equipment, and finished products cheaper and faster compared to more distant markets.
2. Participation in the Eurasian Economic Union. Unified customs rules and a common market allow companies to locate production in one country and gain access to the market of the entire union.
3. A combination of resources and competencies. Kazakhstan provides access to raw materials, industrial sites, and energy resources, while Russian companies bring technologies, equipment, and experience in implementing large-scale production projects.

Belarus: Russia's deepest industrial integration

While Kazakhstan is one of the key destinations for Russian industrial cooperation in Central Asia, Belarus remains Russia's most integrated industrial partner in the post-Soviet space. Unlike the model of individual investment projects, Russian-Belarusian cooperation is built around stable production chains, where enterprises from both countries jointly participate in manufacturing finished products.

The scale of integration is reflected in trade volumes: by the end of 2025, trade turnover between Russia and Belarus reached approximately $51.9 billion, with Russia accounting for roughly 60% of Belarus's foreign trade. A significant portion of mutual trade consists of industrial products: machinery and equipment account for about 25% of the trade structure between the two countries. More than 2,400 companies with Russian participation operate in Belarus, and the accumulated volume of Russian investment in the republic's economy is estimated at approximately $4.5 billion.

One key example of integration is automotive and transport engineering. The Russian market is the primary destination for Belarusian equipment manufacturers, and MAZ and KAMAZ enterprises are linked through component supplies, technology, and production cooperation. For instance, Russian KAMAZ has been collaborating with Belarusian holding company Avtokomponenty for over 10 years: by the end of 2025, the volume of component purchases from Belarusian enterprises exceeded 2.5 billion rubles. Supplies include generators, starters, drive shafts, and ABS braking systems for truck production.

Another important area is agricultural machinery. Minsk Tractor Works (MTZ) remains one of the largest tractor suppliers to the Russian market: Belarus annually supplies tens of thousands of agricultural machinery units to Russia, while Russian enterprises participate in providing components and service maintenance. In parallel, joint projects are developing in machine tool manufacturing, microelectronics, and industrial equipment production: within the Union State framework, 26 integration projects are being implemented, including areas in machinery, microelectronics, and import substitution.

Uzbekistan: betting on energy and industrial modernization

Unlike Belarus, where deep production chains have already been established, cooperation with Tashkent is more focused on creating new capacities in energy, chemicals, machinery, and extractive industries.

One of the largest projects is the construction of Central Asia's first nuclear power plant with the participation of Russian company Rosatom. The project involves placing a 2.1 GW nuclear power plant in Uzbekistan. 

Gas chemistry and fertilizer production remain important. Russian companies are participating in developing chemical industry enterprises, including projects for natural gas processing and producing higher value-added products. For example, Russian company Uralchem's project together with Uzbek and Kazakh partners to create mineral fertilizer production. Investment in the project is estimated at approximately $1.5 billion, with projected capacity of up to 7 million tons of fertilizers and around 600,000 tons of ammonia annually. Implementing such a project enables development not only of raw material supplies but also of domestic chemical production within the region. 

Machinery cooperation is also developing. Russian companies are participating in equipment supplies, production localization, and modernization of industrial enterprises. The portfolio of joint projects with Russia exceeds $20 billion, including projects in energy, industry, transport, and infrastructure.

For Russia, Uzbekistan represents interest as Central Asia's largest market: the country's population exceeds 37 million people, and average economic growth rates in recent years have been around 5–6% annually. For Tashkent, Russian investments are an instrument for attracting technology, capital, and industrial expertise.

India: Major Projects in Energy, Transport, and Industry

The Indian direction differs from cooperation with CIS countries: here we're not talking about creating a unified production system, but rather implementing significant sector-specific projects in one of the world's largest markets.

Energy remains the key sector. One of the most prominent examples is Rosatom's participation in constructing the Kudankulam Nuclear Power Plant in India. The site operates power units with a total capacity of approximately 6 GW, making the project the largest Russian-Indian collaboration in civilian nuclear energy.

Another direction is the oil and gas industry. Russian companies participate in India's energy market through investments in oil extraction and refining. For instance, Rosneft acquired a stake in the Indian company Nayara Energy, which owns an oil refinery in Vadinar with a capacity of approximately 20 million tons of oil per year.

The development of transport infrastructure holds great significance. The International North-South Transport Corridor is designed to connect Russia with India through the Caspian region, Iran, and Indian Ocean ports. The route spans approximately 7,200 kilometers, with the goal of reducing cargo delivery times between Russian and Indian markets compared to traditional maritime routes.

India also remains attractive due to its market scale: the country's population exceeds 1.4 billion people, and its economy ranks among the world's largest. For Russian companies, this represents an opportunity to develop projects in energy, metallurgy, pharmaceuticals, and industrial production. However, cooperation here is built more around individual large investments rather than deep production integration.

China: Largest Partner, but a Different Model of Industrial Cooperation

China is Russia's largest foreign economic partner, yet the cooperation model differs substantially from interaction with EAEU countries. While in Belarus and Kazakhstan the emphasis is on joint production chains, Russian-Chinese relations have long been built primarily around large-scale trade: Russia supplies energy resources, raw materials, and processed products, while China provides industrial equipment, electronics, automobiles, and components.

The scale of economic ties is reflected in trade volumes: by the end of 2025, Russia-China trade turnover reached approximately $228.1 billion, declining 6.9% from 2024. China became the largest buyer of Russian energy: it accounts for a significant share of Russian oil, gas, and coal exports. Simultaneously, Chinese suppliers hold an important position in Russia's automotive and industrial equipment market: in 2025, Chinese brands accounted for more than half (51.48%) of new passenger car sales in Russia.

Meanwhile, industrial cooperation is gradually moving beyond simple trade. One of the largest examples is energy. Russian company Gazprom delivers gas to China via the Power of Siberia pipeline: the route's capacity after reaching design level is approximately 38 billion cubic meters of gas per year. Additionally, Russian oil and gas companies participate in joint projects for energy resource extraction and processing.

Cooperation in industry is also developing. For example, Chinese automakers expanded their presence in Russia after some Western companies departed, establishing local production and assembly projects. In the electronics and equipment segment, Chinese companies have also become one of the main supply sources for Russian industry.

Then there's infrastructure and logistics. China participates in developing transport routes between Asia and Russia, including railway and port projects in the Far East. Russian development institutions are also forming portfolios of joint initiatives: projects with Chinese participation are being implemented in energy, chemical industry, logistics, and equipment manufacturing.

Russian Investment Is Reshaping the Geographic Landscape

Russian industrial cooperation is now developing across several fronts, each serving its own purpose. Belarus remains the prime example of deeply integrated production chains, Kazakhstan stands as one of the key hubs for industrial collaboration in Central Asia, Uzbekistan offers a platform for new projects in energy and processing, while China is the largest trade and investment partner with select large-scale industrial initiatives.

The main trend here is a shift from straightforward trade ties to more sophisticated forms of engagement: joint production, technology localization, and the creation of regional supply chains. Russian businesses are increasingly focused not just on accessing individual markets, but on building long-term industrial relationships with partners across different regions.