These countries are investing more than the UK, USA, France, Germany, Japan and China put together, and the amount of revenue from offshore jurisdictions has doubled over the past two years.
This distribution of foreign investments has changed with the introduction of anti-Russian sanctions. Until 2013, the largest flow of direct investment came from Cyprus, Ireland, Luxembourg, the UK and France. With the introduction of sanctions in 2014, offshore investments dominate. Over the past three years, the inflow of funds from the Bahamas and Bermuda increased from 5.4 to 8.2 billion dollars (a quarter of all direct foreign investment in Russia).
This trend is easily explained: "Western countries, who in previous years have invested in Russia, and now for political reasons do so through 'offshore companies'.
The benefits derived from the yield in Russia for some investors outweigh the risks.
Ed: As the age old adage goes, where there's a will, there's a way. In conclusion, who exactly is the sanctions-mad US Congress fooling?
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