Research On China's Direct Investments And Its Effect On Russia's Oil And Gas Sector

International capital flows is a multilateral process.One of the components of this flow is international investments,which include long-term capital investments in various sectors of the world economy with a main goal of gaining profit.However,it should be known that the investment should be a mutually beneficial process,which means,to bring profit to the recipient,to whom investments are send and to the investor also.In 2014,there was a sharp increase in political risk due to the crisis in Ukraine and the sanctions policy that added fuel to the flame of existing problems in the Russian Federation,which also affected country's investment attractiveness.Due to the above facts,the development of investment cooperation with China has become for Russia the most perspective direction of its foreign policy.Therefore,the good political relations and mutual interest in developing economic ties,common conditions for expanding investment flows from China are currently quite favorable according to Russian government.The purposes of this research are to evaluate and overview the FDI situation in Russian oil and gas industry,its dynamics in the past and highlight the nowadays trends,research specific features of the capital investment projects with China,its effectiveness,calculate the impact of FDI on main economic factors(such as GDP,exchange rate,GNI,GNP)and look at the correlation between FDI inflow and export prices.According to purposes,we suggested to use empirical analysis on current Chinese direct investment in Russia's oil and gas sector,quantitative SWOT analysis of biggest Russian oil and gas companies,qualitative analysis(Granger causality and OLS)of main economic factors and their impact on FDI.