EDB: Most of Iranian direct investments in CIS went to Azerbaijan in 1H22

The total volume of Iranian foreign direct investment (FDI) in the CIS in the first half of 2022 reached $1.8 billion, and their main recipient was Azerbaijan, Report informs, citing the Eurasian Development Bank (EDB).

There are Iranian investments in Armenia, Belarus, Kazakhstan, Russia, and Tajikistan. Investments of the CIS countries in Iran are still small, says the EDB.

According to the bank, mutual investments of the CIS countries with China, Iran and the most developed states of the Arab world have growth potential.

Thus, the accumulated Chinese FDI in 12 post-Soviet countries exceeded $67.5 billion by mid-2022. China's investment in Russia amounted to $12.5 billion.

Chinese investors have become more active in Russia. Chinese FDI share in Russia grew by 27.4% from 2016 to 2022.

The expansion of Chinese capital into post-Soviet countries is significant. Iranian business is likely to increase its presence in the countries of Eurasia, especially in the Caspian region. The Arab world is becoming more and more attractive for investors from the CIS countries.

EDB analysts state that the first period of growth in mutual FDI in the CIS was in 2008–2012. The second significant increase in mutual FDI was in 2016–2020.