Tradeflow Study - UNDP Black Sea Trade and Investment Promotion ...

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III.3. Sectoral opportunities
BSEC countries have achieved substantial success in attracting foreign direct investment in a
number of key sectors. Based on past performance, FDI inflows have ranged from US$155
million in Armenia to US$13 billion in Russia (see Table 21). However the per capita level of
FDI inflows indicate that Bulgaria and Romania have achieved the best performance in the
region, with per capita inflows reaching $287 and $297 respectively, while the worst
performance was achieved by Ukraine ($32). In terms of inward stock, Turkey has the largest
stock of FDI. Only Azerbaijan, Russia and Turkey have recorded significant FDI outflows.
Table 21. Investment inflows and outflows in BSEC Countries (2005)
Inflow Per capita Inward stock Outflow Per capita Outward stock
($Mio) in US$ ($ Mio) ($Mio) in US$ ($ Mio)
Albania 260 83 1,680 82
Armenia 155 51 1,024 7 2 32
Azerbaijan 1,392 170 13,876 1,221 146 3,686
Bulgaria 2,224 287 9,173 316 41 127
Georgia 450 101 2,320 - 90 -20
Greece 662 60 22,455 46 4 12,339
Moldova 225 54 1,129 0 0 28.1
Romania 6,437 297 25,918 - 13 -1 242
Russia 13,072 91 20,351 13,126 92 120,417
Turkey 8,546 118 63,285 1,086 15 8,315
Ukraine 1,497 32 8,364 275 6 466
Serbia and Montenegro 1,481 181 5,428 5 1
Source: ITC Investment Map, 2007
Table 22 presents data on foreign affiliates in selected BSEC countries and gives the
information on the leading investing country, in terms of affiliates in the country. The
establishment of foreign affiliates in BSEC countries is an indication of the success in pulling
in foreign enterprises and also an indication of the increasing competitiveness in these
countries. Russia is by the far the most successful country in attracting foreign affiliates,
followed by Turkey and the Ukraine. Nevertheless Turkey has the largest workforce employed
in foreign affiliates, with over twice the number of employees in comparison to Russia. The
leading investor country is Germany for Russia, Turkey, Ukraine and Serbia and Montenegro.
The Russia Federation is the leading investor country for Armenia due to its interest in the
energy sector.
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