One of the major challenges of reforming and modernizing Russia's economy – attracting foreign investment. Given the serious technological backwardness of the Russian economy for most items, Russia needed foreign capital, which could bring a new (for Russia) technology and modern management techniques, as well as promoting domestic investment. Experience in many developing countries shows that investment boom in the economy begins with the arrival of foreign capital. Create your own advanced technologies in several countries began with the development of technology brought by foreign capital. Foreign investment in non-financial sector of the Russian economy in 1996 amounted to $ 6 billion 506 million 127 thousand on January 1, 1997 accumulated foreign capital in the economy without taking into account of the monetary and banking sector amounted to $ 13,5 billion According to Goskomstat, the total volume of foreign investment on a return basis (in the form of credits) in 1996 was carried out investments worth $ 3.5 billion in the structure of foreign capital, aiming to Russian economy in 1996, direct investment (contributions to the statutory fund, loans from foreign co-owners of businesses) were $ 2 billion 090 million, or 32%. The share of other investments had $ 4 billion 370.7 million (67% of revenues). As noted by Goskomstat, the Compared to 1995, investment of foreign capital into the Russian economy grew by 2,3 times (approximately 130%). This was mainly due to the introduction of the 1 st quarter of 1996 a mechanism to attract foreign investors to the gko market.
Direct investments have increased compared to 1995, only 11%. Among the regions of Russia 66% of total foreign capital ($ 4 billion 291.6 million) was invested in the economy of Moscow. On developed countries account for more than four-fifths of all investment in Russia, and from the U.S. last year received a $ 1 billion, 695 million (26,1%), from Switzerland – $ 1 billion, 323 million (20,3%), from the Netherlands – $ 980 million (15,1%), of uk – $ 486 million (7.5%). Such small amounts of foreign investment can be attributed to poor investment climate are in the process in Russia, as well as the cautious attitude to foreign capital from the government and leaders of some enterprises. Experience in many countries of the Third World, especially Latin America, shows that the adverse working conditions for foreign companies in the country lead to the need of external government loans, and increasing foreign debt. Moreover, since government borrowing commonly used inefficiently, the large external debts are beginning to slow the economy. In addition, government loans are a tool for political pressure and cause economic concessions, including in protect the domestic market.
Government tenders creating a favorable investment climate for foreign companies, the Russian government organized a tendering and bidding on large lots (such as: raw materials, land, commercial property, etc.) to foreign investors. Tenders and investment – have a direct link in the context of the competitive bidding process. Thus, as foreign firms can not efficiently participate in the tenders within our country, and investments made with caution, because of inability to lead a less profitable business in the middle and small segment of the enterprise. Carrying out the same tender only to foreign investors helps to attract foreign investment into our country in small and medium segmene business without infringing the rights of participants own stock markets.