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. Last Updated: 07/27/2016

FDI Hits New High in First Half

The amount being invested in Russian companies from abroad hit a record in the first half of the year, more than doubling on the same period last year, the Central Bank said.

Foreign direct investment in the first half rose to $9.3 billion from $4.5 billion in the first six months of 2004, the figures showed.

In 2004, foreign direct investment totaled $11.8 billion.

In the second quarter, foreign direct investment came in at $3.9 billion, down from $5.4 billion in the first quarter, the report said.

In addition to foreign direct investment, more foreign companies invested in Russian stocks and bonds in the first half, with portfolio investment up 20 percent on the same period last year at $2.4 billion.

The largest deal in the second quarter was Coca Cola buying juice company Multon for $501 million, analysts said.

Italian bank Banca Intesa's purchase of a majority stake in KMB-Bank for $90 million and Luxembourg-registered Evraz Group's purchase of a 10.7 percent stake in Nizhny Tagil Iron and Steel plant for $215 million might also have made it into the statistics for the second quarter, United Financial Group chief economist Yaroslav Lissovolik said.

Oleg Solntsev, an analyst with the Center for Macroeconomic Analysis and Short-Term Forecasting, noted there had been a lot of investment activity recently in the retail sector. Sweden's IKEA recently announced plans to build new retail centers, he said.

Also, Finland's Stockmann bought out a complex of buildings on Nevsky Prospekt in St. Petersburg from the German-based SP AG real estate for $40 million to $60 million, he added.