Foreign Investment as a Factor of Economic Progress: Russian and European Vectors

Abstract

Purpose: The purpose of the article is a comparative study of models of state investment policy, project financing and mechanisms for the implementation of investment projects on the example of the Russian Federation and EU countries. Design/methodology/approach: The authors compared legal, regulatory, institutional, financial and credit, dues instruments for implementing the investment policy of Russia and the European Union. Modern methods of modeling investment projects in innovative, system-forming, socially oriented sectors of the economy. The paradigms of improving the quality of fixed investment and in the growth of their volume in GDP have been analyzed. Promising approaches to preventing investment risks have been highlighted. Findings: The factors holding back the PF: insufficient legislative framework; low level of market and investment infrastructure; lack of a common information base; high design risks and lack of development of the system of management of them; low level of corporate governance; lack of long-term sources of financing deals; undeveloped methods and practices for pf transactions; high cost of capital due to the instability of the banking sector; duration of the project selection process for funding. Originality/value: Promisingly differentiating credit conditions depending on the social and economic importance of the investment project and its resource efficiency. The initiators of such projects may be given preferences under special contracts. Responsible financing standards should determine the requirements for assessing the effects of enterprises performing investment projects. A favourable investment climate contributes to attracting the incomes of working immigrants and foreign entrepreneurs to the investment projects.