The international expansion of Russian enterprises. Looking at Italiantargets

Investment activity by Russian enterprises is a relatively recent phenomenon that is meeting with mounting interest among analysts and researchers, as has occurred for the other emerging economies. Brazil, Russia, India and China - the so-called "BRIC" nations - are affirming themselves at the international level for their ability to invest considerable resources in both developing countries and industrialized economies (Sauvant, 2005; 2008; Ramamurti R., Singh, 2009; Goldstein, 2009). For these nations, foreign direct investment (FDI) represents a fundamental means of achieving economic growth as well as political affirmation at the global level. FDI allows highly accelerated, and often unbalanced, growth processes to be adjusted at the national level. At the same time, individual enterprises, particularly through acquisitions, enjoy access to energy sources and commodities, advanced technologies, brands, skills, know-how and distribution channels to be used to expand and conquer new markets, including in the West (Sauvant, 2005; Spigarelli, 2009). Some aspects make the case of Russia wholly dissimilar to the experiences of the other BRIC nations (Panibratov, Kalotay, 2009). Investors are limited in number and belong to large groups that are either state-owned or the result of privatization after the fall of the Empire. Each transaction involves enormous financial resources. In addition, the main area of interest is the primary sector, and specifically oil, natural gas, metallurgy and electricity (Kalotay, 2008). This paper aims to analyze the primary characteristics of the phenomenon, with a specific focus on the Italian scenario. The goal is to investigate the intensity of Russian FDI, the main players and the underlying motivations. The work is part of a larger research project aimed at comparing the investment activity of BRIC nations in the West and identifying their distinctive traits so as to arrive at a possible key to interpreting the phenomenon in the context of international investment theory (Buckley, 2002) and to understand its consequences in the fields of economics and industrial policy (Spigarelli, 2009). As mentioned above, special attention is devoted to the Italian economy : the passive internationalization generated by emerging economies creates interesting research opportunities and raises questions, some of which relate to the possible impact on its avenues of development, the ongoing transformation of industrial districts and the processes of reconfiguring knowledge and allocating value at the local level. This study represents an initial exploratory analysis of the case of Russia that aims to answer several questions that in turn ought to provide further stimulus for research activity: what are the aspects, critical issues and prospects currently associated with the investment flows and transactions undertaken by Russian enterprises at the global level? As compared to global trends, do the initiatives in Italy show any peculiarities in terms of the sectors involved, the underlying motivations and the modes of entry? Is their impact on the Italian economy relevant, particularly in prospective terms, and in which sectors is it most critical? The methodology of analysis employed is of the descriptive type owing to the limited availability of up-to-date, reliable data series. The foreign investment phenomenon is new and statistical surveying systems have only recently been revamped by the Federation. Accordingly, sophisticated, broad analyses are not possible. The first part of the study places Russian investment activity in the context of foreign direct investment theories. The second part initially examines the main channels of Russian FDI at the global level through a review of both flow and stock figures and the most significant greenfield and non-greenfield transactions undertaken. In addition, the strategic goals pursued by Federation operators are then analyzed. Finally, the paper discusses the Italian scenario, commenting on FDI trends at the sector and regional level, followed by an examination of specific cases of investment through the acquisition or incorporation of new business assets. The analysis ends with some general considerations.