Investment Rating for Russia`s Regions, 2005-2006

National rating agency Expert RA has completed the eleventh annual rating of the investment climate in Russia’s regions

This year the rating technique has received positive conclusion of the largest international audit and consulting company KPMG.

Rating results
The most part of regions have fulfilled their extensive growth potential and the economic development enters a new stage, characterized by the active region regrouping in the “risk-potential” terms

Table 1. Distribution of the Russian regions by investment climate rating in 2005-2006
Diagram 1. Investment climate in Russian regions in 2005-2006.

Risk differentiation
The growth of an average region risk also stopped the lowering of the country risk of Russia and the level of the region various risk differentiation remains extremely high

Diagram 2. Comparative investment attractiveness of Russia and the Subjects of the Federation
Table 2. Investment risk in the Russian regions in 2005-2006
Table 3. Regions with the lowest integral investment risk
Diagram 3. Investment risks differentiation by Russian regions
Diagram 4. Integral investment risks differentiation by regions in federal districts
Diagram 5. Investment risks of Saint-Petersburg
Diagram 6. Investment risks of Koryak Autonomous Area

Potential quality deficit
The investment potential is “attracted” into few regions meanwhile natural resources, the location and infrastructure are still the key factors in the investment potential formation for most regions

Table 4. Investment potential of the Russian regions in 2005-2006
Table 5. Regions with the highest potential for innovation development
Diagram 7.

Rating as a universal tool
Regional authorities gradually drift from the sphere of policy into the sphere of management

Table 6. Infantile mortality level in 2005 - Best regions
Table 7. Infantile mortality level in 2005 - Worst regions
Map. Management risk in Russian regions, 2005-2006 - new!

The information and methods
On the threshold of a new stage of the economic development of the country potential investors show more and more interest to the economic basis and its efficiency

Diagram 8. Expert weight of potential and risk factors in 2005-2006