Russia-MERCOSUR: Investment Cooperation Opportunities

Abstract

The article examines the flows of foreign direct investment (FDI) in the countries of the South American Common Market (MERCOSUR). The changes in FDI inflows and outflows are assessed; the distribution of capital investments by industry and geographical origin is analyzed. Special attention is paid to Chinese FDI. The data on the most significant investment transactions of the PRC in the bloc states are presented and a conclusion is made about the emerging trend of reorientation of Chinese investments from the extractive industries towards electric, water and gas supply enterprises, as well as telecommunications, transport and chemical industries. Investment cooperation between Russia and the countries of the bloc is considered separately. Based on the analysis of investment transactions, it is suggested that it is necessary to establish business contacts with district administrations and use the best practices of Chinese investors for this purpose.