A ‘pivot to Asia’ has not compensated for restricted access to Western investment
As mentioned above, there has been significant Chinese investment in the Russian energy sector. However, overall foreign direct investment (FDI) from Asia has stagnated, except in the final quarter of 2016, when it was boosted by the above-mentioned one-off sale of a US$11 billion stake in Rosneft, which eventually ended up in Chinese hands. In the first quarter of 2017, FDI inflow from non-sanctioning countries, mostly Asian, to Russia was US$5.4 billion – a US$1.2 billion increase compared to the corresponding period of 2014. This was not nearly enough to compensate for a US$8 billion drop in FDI inflow from sanctioning countries during the same period.