Foreign Investment and National Interests in the Russian Oil and Gas Industry

Andreas Heinrich, Julia Kusznir and Heiko Pleines

Post-Communist Economies, 2002, vol. 14, issue 4, 495-507

Abstract: This article examines the political economy of foreign direct investment in the Russian oil and gas industry in order to explain the limited role of foreign capital in this sector. There are three forms of foreign direct investment in the Russian oil and gas industry: (1) joint ventures, (2) investment within the framework of a production sharing agreement (PSA) and (3) foreign equity investment. The development of these three forms of foreign direct investment is analysed with special reference to the interests of the parties involved, before a conclusion on the political factors determining the conditions for foreign investment is made.

Date: 2002
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DOI: 10.1080/1463137022000032709

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