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. Last Updated: 07/27/2016

Foreign Direct Investments Seen Hitting $14Bln in '07

Foreign direct investment in Russia may more than double to as much as $14 billion in 2007 as the economy is expected to grow at more than 6 percent a year for the next three years, the government said in a report.

Foreign direct investment may rise further to as much as $20 billion in 2010 from $6.8 billion in 2003, the government said in the report posted on its web site.

"The receipt of direct foreign investment strongly depends on the social-economic and political stability of the country," the report said. "Above all, that means risks of a political character."

Russia is striving to catch up with Eastern European countries such as Poland, which attracted more foreign direct investment per person than Russia following the fall of the Soviet Union in 1991. Poland, whose population is about a quarter of Russia's, attracted $6.06 billion of foreign direct investment in 2002, while Russia drew $6.8 billion.

The economy may grow 6.4 percent this year, Economic Development and Trade Minister German Gref said last week. The report said the economy probably will grow between 4.8 percent and 6.2 percent in 2005, 4.9 percent to 6.1 percent in 2006 and 4.9 percent to 6.2 percent in 2007.

The economy more than halved in the first eight years of the 1990s following the collapse of the Soviet Union. It grew for the first time in 1997, then contracted in 1998. It grew 7.3 percent in 2003, 4.7 percent in 2002, 5.1 percent in 2001, 10 percent in 2000 and 6.4 percent in 1999.

At the end of 2003, gross domestic product totaled $433.7 billion, or about 84 percent of the total for 1991, the year the Soviet Union fell.

The economy will grow to the equivalent of $542.5 billion in 2004 and $772.9 billion in 2007, according the ruble exchange rates forecasts contained in the report.

Russia had a record $29.7 billion of foreign inflows last year, the government's statistics agency said.