The Russian stock market in 2025: the expectation of an increase of foreign investment
The Russian stock market today presents a picture divided into two main groups of industries that are attractive to foreign investors for various reasons.
The Russian Direct Investment Fund forecasts a significant increase in foreign investment in Russia in 2025. This statement by Kirill Dmitriev, CEO of the Russian Direct Investment Fund, made on the sidelines of the VTB investment forum “Russia is Calling!” caused a lively discussion among experts and analysts. Dmitriev justified his optimistic forecast by several factors. The key one is the supposed pragmatic foreign policy of the new US administration under the leadership of Donald Trump (this statement was made in the context of Trump’s potential return to power; the current political situation may vary). According to Kirill Dmitriev, a more predictable geopolitical situation can attract investments from both the countries of the Global South and Western investors.
The Russian stock market today presents a picture divided into two main groups of industries that are attractive to foreign investors for various reasons.
Group 1: Domestic demand and diversification.
This includes industries that are critically important for the domestic market and demonstrate high resilience to external shocks through diversification. Examples:
Chemical industry (low-grade): Production of fertilizers, plastics and other necessary materials. This sector provides for domestic needs and has the potential to grow despite the sanctions.
Automotive industry: Despite the difficulties, domestic demand for cars remains, and the development of own production is critically important for economic independence. Opportunities for foreign investment are associated with localization of production and technological renewal.
The investors most likely here are companies focused on long–term projects and steady, albeit slow, growth.
Group 2: Export-oriented industries.
The second group includes sectors whose products are not subject to sanctions and are actively exported.:
Fertilizer production: High global demand and stable prices make this sector attractive to foreign investors.
Food production: Russia has significant agricultural potential, and food exports can bring high profits.
Production of medical products: The need for high-quality medical products is huge, both domestically and internationally.
Investors here are looking for a stable income from exports that is minimally affected by sanctions.
Who can invest and why?
Potential foreign investors, in addition to traditional players, can be represented by:
Investors from India, China and the Middle East: Their interest in the Russian market has already been shown before and may increase in the face of sanctions pressure. These are countries with growing economies and significant reserves.
Investors focused on carry-trade operations: A high ruble rate can attract them to profit from the difference in interest rates. However, this segment is extremely sensitive to changes in the ruble exchange rate and the macroeconomic situation.
Investors interested in export-oriented sectors: the oil and gas sector, non-ferrous and ferrous metallurgy, as well as the financial sector offer quasi-currency returns.
Conditions for the influx of foreign citizens in the financial market
Investment experts believe that the lifting of economic sanctions is necessary to revive interest in Russian assets. These factors are critically important for creating a stable and attractive investment environment in the country, emphasizing that in this case, investors will experience a real boom. Based on the fact that Russia has significant resources and potential for growth, which can be realized in conditions of normalization of the international situation.