Eurasian Integration Yearbook 2012

The Economics of the Post-Sovietand Eurasian IntegrationKuznetsov, 2011). Accordingly, the results of MMI CIS are most interestingfrom the perspective of FDI in industry by other CIS countries and Georgia (seeTable 8.8).IndustriesDirect investmentby Russia($ billion)Direct investment fromother CIS countriesand Georgia ($ billion)Total directinvestment($ billion)Telecommunications 10.79 0.1 10.89Production of oil and natural gas 6.19 – 6.19Transportation and sale of gas 5.62 0.34 5.96Production of cast iron, ferroalloys,steel, rolled metal and charred coal4.15 0.12 4.27Banking 3.29 0.87 4.16Power 3.17 – 3.17Production of non-ferrous metalsincluding goldProduction and enrichmentof uranium2.54 0.05 2.592.34 – 2.34Oil refining 1.65 – 1.65Petrol stations 1.49 0.16 1.65Coal production 1 0.4 1.4Railways 0.28 1.1 1.38Hotel business 0.6 0.76 1.36Table 8.8.The key recipientsof direct investmentSource: MMI CISProduction of chemicals includingpolymeric pipes0.62 0.28 0.9Processing and sales of gas 0.89 – 0.89Retail trade 0.82 0.06 0.88Some industries which are important to Russian TNCs, for example, oil andnatural gas, power, etc., are not as attractive to other countries in the region,even when they are highly developed in these countries themselves. Ferrousand non-ferrous metallurgy also receive small amounts of FDI. By contrast,nearly 21% of all the region’s mutual investment in banking was made bynon-Russian banks, which rather indicates the weak competitive position ofRussia’s banks compared to its industrial TNCs. The same is true of the Russianhotel industry, which has so far failed to attain the high standards set by itsoverseas counterparts. Data on railways and chemical production are not worthcomparing, since there is only one large project in each of the industries andthe figures are high.There are over 50 incomplete projects in the MMI CIS database; these can bedivided into the following categories:144 EDB Eurasian Integration Yearbook 2012