How Russian Business Is Ramping Up Investment in CIS, Asian and African Nations

Between 2021 and 2025, the geography of foreign direct investment from Russia underwent a major restructuring, playing a significant role in the economy's further development. According to Bank of Russia data, outbound FDI fell 39.3% in the period from January 2022 to January 2025. This was driven by changes in the geopolitical landscape and large-scale capital repatriation. At the same time, the pace of decline has stabilized in recent years, with business actively adapting to the new conditions. Investment flowed out of Europe and North America and into CIS countries, BRICS nations, Persian Gulf states, and regions in Africa and Latin America. Against this backdrop, investment in Germany and Cyprus dropped 45% and 19% respectively, while Canada saw a 37% decline. Meanwhile, commitments to Azerbaijan, Kazakhstan and Uzbekistan increased substantially. Investment in Dubai and Saudi Arabia surged 15-fold and 11-fold respectively. In Africa, the most dynamic growth was in Egypt — up 41% over 2021–2024. The structure of investment directions has changed little: commodities, manufacturing, infrastructure and IT remain dominant. The state is focusing on building overseas production and logistics capacity as a tool for sustaining exports and creating alternative supply chains. At the same time, expansion into new regions brings heightened political and operational risks: instability, low corporate sector transparency, specific business cultures, and secondary sanctions exposure. This creates a need for stronger capital protection mechanisms. EXIAR provides insurance instruments covering up to 95% of political risks, including payment blockages, legislative changes and expropriation. Additional investment protection agreements have been concluded, including with China and Myanmar.

In sum, Russia is now demonstrating a strategic pivot toward new growth centers and building long-term relationships with friendly nations. The success of this model depends largely on business's ability to effectively manage elevated risks and leverage new opportunities for the country's external economic presence.