Foreign Direct Investment And The BP-TNK Deal - The Broader Picture

Publication date
Friday, 14.02.2003

Niclas Sundstrom

Citigroup/Schroder Salomon Smith Barney

As markets continue to digest the news of the major BP foreign investment deal in the Russian oil sector, it is crucial to stress that the overall and medium-term significance of this deal goes well beyond the oil sector and it could be of a major importance for Russia as a whole1. Apart from well-researched positive effects of FDI (e.g. improved corporate governance, higher productivity, trickle -down impact on other entities and sectors, an additional impetus for corporate restructuring) there are at least four key reasons for this.


Niclas Sundstrom,
Analyst of Citigroup/Schroder Salomon Smith Barney
Economic and Market Analysis, London EC472

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