The government is unlikely to meet the target to raise investments to 25% of the GDP in 2024-2025, the head of the audit chamber and former FinMin Kudrin said at the sidelines of the IMF meetings in Washington. In 2018 the share of investments reached 20.6% of GDP, actually declining compared to the previous year. According to Kudrin, the reasons are the general investment climate, sanctions, cautious implementation of structural reforms, tax increases. Kudrin also noted the decline of foreign direct investments recently, linking this also to the criminal investigation against Michael Calvey.
According to EconMin Oreshkin, lower investments in 2018 were primarily due to the oil sector, which reduced spending on development of new fields as a result of the OPEC+ agreement. In the non-oil sector, investments are actually growing ahead of the planned rates, Oreshkin said. According to the government’s long-term forecast, the share of investments in GDP should climb to 22.2% in 2018-2021, 26.4% in 2027-2031 and 26.8% in 2032-2036.