Policy Choices of the Post-Soviet States Regarding Foreign Direct Investment in the Key Sectors of their Economies: the Experience of Kazakhstan, Russia, and Ukraine

Why did some post-Soviet states open up their key economic sectors to Foreign Direct Investment (FDI) while others did not? This dissertation argues that the levels of FDI were a result of conscious policy choices rather than ability or inability of the post-Soviet states to create positive investment climate. It explains why Kazakhstan, Russia, and Ukraine made different policy choices regarding FDI into their oil and gas, and metallurgy and mining sectors despite similar sectoral composition of their economies and common past as part of the Soviet Union. I argue that these policy choices were political. The state officials made their policy choices under the influence of two main factors.;The first factor was whether or not they believed they could develop a sector exclusively through the use of national resources, with the help of domestic state and private actors. The state of the sector's development during the Soviet era heavily influenced this perception. After the collapse of the USSR, all sectors across all republics needed capital and technologies to maintain production, yet needed them to a different extent. The second factor influencing FDI policy choices was the strategy of power maintenance that political regimes chose and, more specifically, the different political roles they ascribed to different sectors. Sectors with their assets became highly material forms of power that were used by the regimes toward attainment of these three goals.