INSUBCONTINENT EXCLUSIVE:
Despite the Russian elites' rhetoric about challenging Western hegemony, two recent indicators tell a less comfortable story for the Kremlin
foreign leaders and heads of major multilateral organizations like the IMF, this year's forum was dominated by abstract discussions about a
multipolar world and only one head of state, the president of Indonesia.Second, the latest statistics from the UN Conference on Trade and
Development (UNCTAD) showed that the Russian economy attracted $3.35 billion of foreign direct investment (FDI) in 2024, a 91% drop compared
from approximately 1% from 2015 to 2020 to 0.3% from 2021 to 2023
comparison to the scale of Western investment in Russia before the war
In 2021, the EU held 255 billion euros in FDI stock in the country
investment projections ranged from $12.3 billion to $39.1 billion, depending on the methodology used.The data tells a story that is echoed
in the news cycle as Moscow struggles to find buyers for assets left behind by Western firms and to persuade China to invest in new
Vladimir Putin hoped the Power of Siberia 2 gas pipeline to China would offset Russia's loss of market share in Europe following the
system, forcing it to increasingly rely on trade in national currencies with other countries and use intermediaries for transactions and
capital transfers.For instance, the ruble's share of Russia's payments for exports has increased from 14.3% in 2021 to 41.3% in 2024, and
for imports from 28.1% to 43.2%.No such shift has been observed on the global scale, as dollars and euros account for 72% of international
But they are certainly not willing to forgo the advantages of the global financial system, nor would they want to risk their wellbeing for
dollars, which are freely convertible and stable currencies
tightly regulated, and the government does not want to do business with companies that have been sanctioned by the West.In 2024, Russian
yuan-denominated bonds had reached an impasse due to disagreements with Chinese regulators.Though Russia could issue Panda bonds, which are
sold on the Chinese domestic market and require a permit to transfer funds out of the country, Moscow would prefer to use its own
private funds often prefer high-risk, high-reward investments, Chinese investors are more risk-averse and bound by red tape.Significant
investments abroad or purchases of foreign debt require approval from Chinese government bodies, exacerbating an already cumbersome process
Additionally, Asian markets are flooded with domestic ventures that generate high returns, so there is less of a pressing need to turn to
Russia.For example, the Chinese government's crackdown on risky financial activities was the reason why a high-profile deal in 2017 between
