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Political Risk for Foreign Firms in Russia


  • Liuhto, Kari

    () (Pan-European Institute)


In this article the author discusses the political risks of foreign firms in Russia. Risks vary a great deal between the industries. Telecommunications is the most risky industry for a foreign firm at the moment. State consolidation in the oil and gas business has continued. When Russia experiences difficult times, foreign oil companies enjoy good times in Russia, and vice versa, and therefore, the latest crisis gives, at least, a temporary relief for foreign oil firms. I predict that the metal industry will also see its national champion. The production of electrical energy is a strategic sector, though it was not explicitly named in the law of strategic sectors, and foreign electricity firms operating in Russia may face surprises, if the Russian Government turns more nationalistic in the next decade.

Suggested Citation

  • Liuhto, Kari, 2010. "Political Risk for Foreign Firms in Russia," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 141-157, September.
  • Handle: RePEc:rjr:romjef:v::y:2010:i:3:p:141-157

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    Cited by:

    1. Andrei, Dalina Maria, 2012. "Foreign Direct Investments in Romania. A Structural and Dynamic View," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 129-146, December.
    2. repec:exl:25engi:v:27:y:2016:i:2:p:151-162 is not listed on IDEAS
    3. Ewa Martyna-David, 2016. "Political Risks of Western Companies in a Transforming Country. Evidence from Russia 2014," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 14(1), pages 21-35.

    More about this item


    Investment climate; political risks; foreign direct investment in Russia;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business


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