Analyzing Foreign Investment Techniques in Russia

Abstract

With Russia there is, in favor of Serbia, asymmetrical zones of free trade, which, because of "exceptions" for products with which the two countries have strong export potential, prevents the full realization of foreign trade potentials of both sides. After solid growth in the first 13 years of the 21st century, trade between the two countries has virtually stagnated, with marginal exports growing marginally. The structure of Serbia's exports to the Russian Federation (RF) by factor intensity of products indicates that almost half of exports are based on resource and primary products (significantly more than the country's total exports) and thatthe situation has deteriorated significantly. On the side of imports from the Russian Federation, the dominant part is made up of resource products (energy sources) and this has not changed significantly during the observed period. The unfavorable structure of exchange is indicated by the very low index of intra-industrial trade of the two countries, as well as the high coefficient of concentration of Serbian exports to the Russian Federation. Based on the IMF projections on solid overall growth of Serbia's trade in the next five years, and the expected effects of the Agreement with the Eurasian Economic Union (EAEU), which could encourage exports of the agri-food sector, especially cigarettes, we can expect continued growth with Russia . However, the downward trend in the share of these countries in total exports and imports difficult that will be stopped as it is associated with increased networking of the country in global supply chains of EU companies that are becoming the largest Serbian exporters.