The Rise of Russian Transnational Corporations

Abstract

This article explores the main features of outward foreign direct investment and transnational corporations from Russia since 1991. The universe of Russian transnational corporations shows a great variety in its ownership structures, motivations and strategies to invest abroad. There are nevertheless to two common characteristics they share. The first one is their leapfrogging to the global scene, to mention Alrosa, Gazprom, Lukoil, Mechel, Norilsk Nickel, RusAl and Severstal as prime examples. The other common characteristic of the Russian transnational corporations is their strong link with the natural resources of their home country. Until recently, they were all based on oil and gas, metallurgy, mining or related activities. The article aims also at identifying issues for further analysis, such as the growing role of the State in controlling natural resources-based firms and its implications for the future of Russian transnational corporations.

Keywords: Russia, TNC, outward FDI, natural resources, global firms

JEL Classification: F23, F21, L71, O52, Q34