The economic achievements, in addition to the government efforts to implement reforms, have raised business and investor confidence in the Russian economy. The Russian government follow the path of reform. Specifically the administrative, tax and banking reforms should be continued in a way that could create a more welcoming climate for foreign investors. The efforts undertaken until now are recognized and hailed.

Foreign investments increased by 17 % in 2003. The reinforcement of the relations between the E.U. and Russia give better insurance concerning the investment. The European Bank of Reconstruction and Development offers financial products (loans for Multinational Companies and Small and Medium Enterprises as well as financial participation up to 35% of the capital invested for large investments only) to European companies willing to operate a business in Russia. At the same time, the EBRD limits the financial risk involved when doing business in Russia as the company will not have to repay the financial participation if drastic political events occur. Financial products are also offered to private companies investing in Russia by the International Finance Corporation. It is therefore highly advised to companies to use those services when investing in Russia to limit the risks.

Despite these opportunities the foreign direct investment inflow remains considerable below its potential level. Many investors feel a lack of informations. The country size, the large population and therefor the complex business environment arouse the impressions that it might be very difficult to succeed in Russia. On the other side the time of communism is not so far away, the financial crises in 1998 is still in the mind of many foreigners and many investors complain the lack of common western principles. For example the Yukos case with its main shareholder Khodokovsky was regarded very carefully in the western states and confirmed once again the reservations against the current political institutions in Russia. At company top levels, business still is politicised and therefore there is a need for a protection of minority shareholders of foreign companies. This is a major political risk even though things are getting better.