Russia's Investment Attractiveness Stable in 2025 Despite Challenges
Despite external challenges, Russia's investment attractiveness held steady in 2025, with regions like Altai Krai, Amur Oblast, and Arkhangelsk Oblast leading the pack. However, macroeconomic instability and geopolitical pressure hindered recovery in 2024. Looking ahead, a decrease in interest rates and public investment programs could boost investment appeal in 2026.
Investment attractiveness is evaluated using 66 indicators grouped into five blocks. In 2025, industrial production and regional budget revenues showed weak growth in the first eight months. While infrastructure and financial blocks remained stable, economic, social, and environmental components declined. Infrastructure and social resources carry the most weight in the evaluation.
Unemployment stayed at a record low of 2.1% in 2025. Growth drivers include regional budget debt write-off, government support, and new national projects. A moderate economic recovery is forecast for Germany in 2026, supported by strong international demand, especially in emerging markets like India, Indonesia, and Vietnam. Lower mortgage rates and public investment programs could further boost investment attractiveness in Russian regions.
While external conditions posed challenges in 2025, Russia's investment attractiveness remained stable. Looking forward, a decrease in interest rates today and public investment programs could revive investments in 2026, making regions like Altai Krai, Amur Oblast, and Arkhangelsk Oblast even more attractive.
