Russia's Biggest Businesses Doubled Foreign Assets in 2 Years
By Torrey Clark
Dec. 11 (Bloomberg) -- Russia's 25 largest overseas investors, led by OAO Lukoil and OAO Gazprom, more than doubled their foreign holdings over 2005 and 2006 as soaring fuel and metals prices boosted profits at the country's biggest companies.
Russia accumulated $157 billion of foreign direct investment at the end of 2006, second only to Hong Kong among emerging markets, according to a study published today by the Columbia Program on International Investment at Columbia University, New York, and the Skolkovo Moscow School of Management.
``Russian global players are catching up with international competitors quickly,' the study said. Russia will probably invest more than $20 billion a year directly to 2011, from $18 billion in 2006, still lagging behind Brazil and China.
More than one-third, or $58.7 billion, of Russia's total accumulated outward investment by the end of last year was made by the country's 25 largest multinational companies. That's up from $23 billion at the end of 2004.
Oil, gas and metals producers, flush with cash after international prices for their goods rose, led the expansion abroad. Lukoil acquired $18.8 billion of foreign assets, while Gazprom held $10.6 billion. OAO Severstal, the first Russian steelmaker to buy a U.S. mill, was third with $4.55 billion.
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