УДК 336.012.23

Specific issues to the investment attractivenessassesment in Russia

Слепнева Галина Дмитриевна – магистрант Российского экономического университета им. Г.В. Плеханова

Abstract: The article discusses the features of the investment market in Russia. The factors of investment attractiveness of Russia, the relationship between the investment attractiveness of an enterprise within the country and the general investment attractiveness of the region are being studied. The main parts of the investment policy are given as the basis for conducting the investment activity of the enterprise. The importance of having an investment policy of the company as the main tool for the future successful development of the company is proved. The position of Russia in terms of the global competitiveness index, which is a general characteristic of the country's investment attractiveness in the world, is analyzed. The investment attractiveness of Russia in 2022 and 2023 is assessed.

Keywords: investments, investment policy, investment activity in Russia, investment attractiveness.

Russian economy differs from others. Consequently, definition of investments is also different. According to federal low number 39 investments are “cash, securities, other property, including property rights, other rights having a monetary value, invested in objects of entrepreneurial and (or) other activities in order to make a profit and (or) achieve another beneficial effect”: This is a key definition but not the one. For example, V. E. Leontiev., V. V. Bocharov, and N. P. Rudkovskaya are unanimous in determining the economic essence of investments, and define them as “a set of costs realized in the form of a purposeful investment of capital for a certain period in various industries and areas economy, into objects of entrepreneurial and other types of activity to generate profit (income) and achieve both individual goals of investors and a positive social effect” [1].

Investments are an integral part of the development of any economic entity. That is why the question of investment attractiveness, as the main criterion for the inflow of investments, comes to the fore. It is axiomatic that the higher the investment attractiveness of the investment object, the more necessary resources to ensure development will be provided by the investor.

In this regard, the opinion of S.S. Seregin is true that there are complex relationships of mutual influence in the process of investment attractiveness interaction within economic systems of various levels. A special place here is occupied by the investment attractiveness of the enterprise, at the level of which there is a direct interaction of production factors and the creation of an additional product” [6].

Often the management of most enterprises in Russia is not aware the importance of increasing investment attractiveness and does not fully deal with the development of a methodology for analysis and evaluation, the study of its increase, which is a big omission, because in many respects the potential growth and future development of an enterprise directly depends on the level investment attractiveness. The determining factor in investment activity, the success of which directly affects the investment attractiveness of an enterprise, is the formation and implementation of its investment policy. At the moment, there are many interpretations of the concept of "investment policy" in the scientific literature. The Russian authors understand investment policy as:

a set of measures for the successful achievement of the set goals (Endovitsky D. A.);
a set of measures that ensure a profitable investment of funds (Vilensky P.L.).

To generalize investment policy of enterprise – is a set of long-term goals of the company that determine the ways to achieve the maximum investment result. Russian economists suggest approach of connecting the investment attractiveness with investment policy in such way: assessment of the investment attractiveness of the company, analysis of the results, determination of factors that positively and negatively affect the formation of investment policy plus accounting for the macroeconomic characteristics of the enterprise leads to formation of investment policy. Key problems that investment policy resolves are:

providing a mechanism for the implementation of long-term general and investment goals for the upcoming economic and social development of the organization as a whole and its individual structural units;
assessment of the organization's capabilities, ensuring the maximum use of its internal investment potential and the ability to actively maneuver investment resources;
enabling rapid implementation of new investment opportunities;
taking into account possible variations in the development of factors of the external investment environment that are not controlled by the organization and minimizing their negative consequences for the organization's activities;
reflection of the comparative advantage of the organization in investment activity in comparison with its competitors;
ensuring a clear relationship between the strategic, current and
operational management of the organization's investment activities;
ensuring an appropriate program of organizational behavior in the framework of the implementation of the most important strategic investment decisions.

The eight elements are quite detailed and due to Russian economists are essential part of investment attractiveness of the company. Correct investment policy allow company to achieve firstly, the increase of profit and volume of production with specific demand. Secondly, increase share of market and improvement in competitive environment. Thirdly, increase in economic, social, production and other efficiency of the entire enterprise. Finally, improving the welfare of the investor, that is crucial moment in the investing process.

Thus, it is necessary to understand with the help of what levers it is possible to influence investment attractiveness. The investment attractiveness of any enterprise is influenced by a large number of factors that can be both dependent and independent of the results of the company's economic activity.

Endovitsky D. A. considers that internal factors depend on activities of an economic entity, i.e., these are factors that it can influence. These include:

enterprise management system;
nomenclature of manufactured products;
financial condition of the enterprise;
diversification of production;
degree of use of innovative solutions in production technology;
degree of openness of the company, completeness and reliability of information disclosure in the reporting;
corporate social responsibility of the organization [2].

External factors do not depend on the economic entity. These include:

political and domestic economic environment;
economic features of the industry;
economic potential of the region;
system of legislative norms, etc. [7].

The system of levels of investment attractiveness in which the enterprise operates is shown in figure 1.

Figure 1. The system of levels of investment attractiveness of Russia. Source: Author`s elaboration.

Since the enterprise operates in the industry and the region, which in turn belongs to a certain state, the assessment of investment attractiveness can only be given on the basis of an integral assessment of the investment attractiveness of all three of its components.

The investment attractiveness of a country is an integral indicator, which is determined by the totality of its economic and financial indicators, indicators of state, public, legislative, political and social development. Investment attractiveness determines the vector of movement of physical, financial, intellectual and human capital into the country or abroad. This is a general category that determines the feasibility of investment activities in the country as a whole. It is influenced by such indicators as social and political stability, economic stability, the development of the credit and financial system and the stock market, tax policy, the legal field, and the degree of state regulation of market relations [5].

Moving to Russian practice in the investment activity it is important to notice that None of the countries in the world can ensure the sustainable development of the national economy and the stable growth of macroeconomic indicators without a regular influx of foreign investment. Wanting to place their funds in a particular country, the investor resorts to a subjective assessment of a number of indicators that characterize the expediency of investing his capital and, consequently, obtaining the maximum profit from investments.

Analysis of the investment attractiveness of the country, as mentioned earlier, involves affecting many aspects of the functioning of its economy. This requires a large amount of primary information, as well as colossal analytical work. In this section, we will consider as the main indicator - an index of global competitiveness, which combines all the factors listed above. It is formed from the results of an annual global study, based on which countries are ranked in terms of economic competitiveness according to the World Economic Forum. Due to the fact that the values of this index are published with some delay, the picture is presented with some error, but still shows the situation as a whole.

The World Economic Forum defines the national competitiveness as the ability of a country and its institutions to ensure stable economic growth rates that would be sustainable in the medium term. The authors of the study emphasize that countries with high indicators of national competitiveness, as a rule, provide a higher level of well-being for their citizens. It is assumed that the index should be used by states that seek to eliminate obstacles to economic development and competitiveness. It is a tool for analyzing problem areas in their economic policies and developing strategies to achieve sustainable economic progress.

The study has been conducted since 2004 and currently represents the most complete set of competitiveness indicators for various countries of the world.

The authors note that the improvement of Russia's position in the ranking was facilitated by the growth of macroeconomic indicators, nevertheless, the country's economy remains very dependent on raw material exports. According to the authors of the report, the financial market is still poorly developed in the Russian Federation. In addition, the assessment of the independence of the activities of the courts and the provision of property rights are in low positions. All of these factors hinder the increase in the inflow of foreign capital and, as a result, hinder the growth of the country's competitiveness as a whole. Among the rather strong sides of Russia, experts note the size of the market, the level of education, and the development of infrastructure. Thus, the investment attractiveness of Russia, based on the Global Competitiveness Index is quite a volatile indicator. In order to increase the rating of the country's investment attractiveness, it is necessary to work and carry out serious changes in problem areas.

Investments in fixed capital is one of the main digital indicators that can in numerical terms show the state of investment attractiveness of Russia (fig. 2).

Figure 2. Investments in fixed capital of Russia, mln RUR. Source: Author`s elaboration on 4.

By presenting a graphical representation of the investment indicator separately, one can notice a pronounced positive trend. In 2018 investments in fixed capital bigger than investments in 2000 in 15 times, that is enormous dynamics. It shows enterprises` investing activity in their business and positive trend in the future development within Russia.

2022 year was historical according to investment activity of Russia at all. The year 2022 was truly unusual for Russian investors — the fall in stock prices on February 24 to 45% at the moment, the suspension of trading for almost a month, the emergence of two different markets for Russian instruments. Country also faced the freezing of part of investments in foreign instruments, with the restrictions of Western brokers and banks for Russians, and on the cross-border movement of capital - from the Russian legislation [3].

Russia in 2022 has radically strengthened its sovereignty in terms of financial markets. After the mass exodus of foreign investors, our stock market has become much less dependent on global market sentiment. In 2023, the dynamics of the Russian market will be significantly more influenced by internal factors.

The main trend in the world in 2023 will be continued tightening of monetary policy and raising rates in order to fight inflation. The problem is that high inflation in developed countries has lasted long enough.

The decisive factor in the cause of the collapse will be the presence or absence of a sufficient amount of liquidity in the markets. This is what determines how strongly the market will react to positive or negative news. When there is a lot of money, positive news wins back stronger, and negative corrections are short-lived and quickly redeemed. Therefore, it is important to understand that the coming year 2023 will be special. Cheap money is over, so do not rush to buy on corrections.

So, from an investment point of view, the most reasonable tactic for 2023 seems to be a waiting strategy. However, it is important to understand where to store dollars for potential asset purchases. Some brokers and banks have already restricted their work with Russians. However, there are enough large players who continue to provide services.

It is important to note that even if Western financial institutions decided to stop working with the Russians, they provided opportunities to withdraw assets. So it was with brokers, and with banks, and even with crypto exchanges. If you do not have the risk of falling under sanctions, then keeping assets in foreign accounts is quite safe. Moreover, in the second half of 2022, cases of account blocking or informal difficulties with the withdrawal of funds mainly occurred not in the United States and European countries, but in Dubai and the republics of the former USSR.

One of the most important victories of Russia in 2022 was the retention of most of the assets of the population and companies in the ruble zone. Despite noticeable fluctuations, we met the end of 2022 with approximately the same dollar/ruble exchange rate as at the beginning of the year. Russian economic agents keep ₽50 trillion, and the issue of saving these funds is more relevant than ever.

Literature

Accounting for investments in human capital in professional sports organizations [Text]: Textbook / Ed. by L. I. Kulikov. – M.: Prospekt, 2018. – 192.
Analysis of the investment attractiveness of the organization [Text]: Textbook. manual / Ed. D.A. Endovitsky. – M.: Knorus, 2010. – P. 376.
A. “Wait for the real panic”: features of investments in 2023. URL: https://quote.rbc.ru/news/article/63dbc8949a79476c99fe37da.
Official website of the Federal State Statistics Service [Electronic resource]. URL: https://rosstat. ru/ (accessed 11.06.2023).
Rostislavov R.A. Investment attractiveness of the enterprise and factors influencing it [Text] // Proceedings of the Tula State University. Economic and Legal Sciences, 2010, no. 2.
Seregin S.S. Strategy for improving the competitiveness of the enterprise [Text] // Sectoral features of regional development, 2016.
Yukhtanova Y. A., Bratenkova A. V. The essence of the investment attractiveness of the enterprise and the factors affecting it [Text] // Young scientist, 2015, No. 10.

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