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Russia's wartime investment boom

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  • Simola, Heli

Abstract

A sharp increase in fixed investment has been a key factor supporting Russia's economy in recent years. This brief highlights the drivers of Russia's recent investment boom. During 2022, the first year of the full-blown war in Ukraine, investment growth was dominated by increased budget spending, war-related investment in construction of transport and warehouse infrastructure, as well as investment in oil & gas production in western Siberia. In 2023, the emphasis in investment growth shifted to firms funding investment out of pocket and manufacturing, particularly firms involved in war-related or resource-intensive branches. Although intellectual property (IP) only represents a small share of Russia's total investment, IP investment has increased sharply in recent years.

Suggested Citation

  • Simola, Heli, 2024. "Russia's wartime investment boom," BOFIT Policy Briefs 4/2024, Bank of Finland Institute for Emerging Economies (BOFIT).
    • Handle: RePEc:zbw:bofitb:295238
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    Keywords

    Russia; war; economy; investment;
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