A Slump in Capital Investments Continues

According to the 2015 results, capital investments in Russia amounted to Rb 14.56 trillion having decreased 8.4% in real terms.

Nominal growth in investments was mainly justified by small businesses’ investment activities. Within a year, capital investments in large and mid-sized enterprises fell from Rb 10.38 trillion to Rb 10.28 trillion (10.2% in real terms).

In 2015, 48.9% of capital investments were formed by means of attracted funds. The main source of funding of capital investments were own funds (51.1%) whose share in the pattern of capital investments grew within a year from 45.7%. A similar situation was observed only in the post-crisis 1999.

In 2015 state financing of capital investments in Russian enterprises kept decreasing: the share of public funds and extra-budgetary resources fell to 16.8%. The role of Russian banks in investment projects became rather modest: their share in the sources of investment funding amounted minimum to 5.9% in the past decade. It is to be noted that in the past two years both Russian banks’ loans and public funds for investment purposes kept decreasing not only as a share in the pattern of investment sources, but also in nominal terms.

In addition to the above, the role of borrowed funds received by enterprises from foreign banks and other entities as a source of funding of capital investments changed, too. It is to be noted that borrowed funds permitted to finance only 7.6% of capital investments against 9% a year before.

The most important source of funding of capital investments is still funds of superior entities: despite a decrease in the share of that source from 13.2% in 2014 it is still at quite a high level of 10.5% (Fig. 1).


- Russian banks’ loans
-Public funds and extra-budgetary resources
-foreign banks’ loans
-other entities’ borrowed funds
-entities’ and households’ funds for shared-equity construction
-superior entities’ funds
-funds received from corporate bond issues
-funds received from equity issuing

Fig. 1. Changes in the pattern of attracted funds as a source of financing capital investments in Russian enterprises in the 2014-2015 period, %

So, in the past year the role of own funds in financing investment activities of Russian enterprises increased: in 2015 their share amounted to 51.1%. It is to be noted that public funds from extra-budgetary funds (16.8%) and superior entities’ funds (10.5%) played an important role as external sources of support of investment activities.

According to the pattern, 56.4% of capital investments were spent on building and construction. In particular, the share of investments in housing development amounted to 15% against 14.5% in 2014, while that of investments in building of non-residential facilities, to 41.4% against 40.8% a year before (Fig. 2).


-buildings (except residential ones) and constructions
-machines, equipment and transportation means

Source: The Rosstat

Fig. 2. Pattern of capital investment types in the 2014–2015 period

At the same time, in the pattern of capital investment types investments in modernization of production and technical facilities of the Russian economy decreased: the share of investments spent on purchasing of machines, equipment and means of transportation fell from 36.3% of the total volume of investments to 34.7%.

In 2015, a decrease in financing of Russian enterprises’ investment programs at the expense of bank funds, public funds and resources borrowed on global financial markets was registered. However, Russian enterprises managed to close last year with good financial results, so they got better opportunities of self-financing their investments. However, to overcome recession and a downward trend in capital investments it is important to carry out state programs which promote investments and ensure not only privileges to enterprises for self-financing of their capital investments, but also state support of purpose loan programs.

Dina Schelokova, Senior Researcher of the Structural Research Center