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Russian MNCs: Empirical and Theoretical Aspects

The Challenge of Bric Multinationals

ISBN: 978-1-78635-350-4, eISBN: 978-1-78635-349-8

Publication date: 24 November 2017



Russia is one of the leaders in outward FDI from emerging market economies and at the same time Russian MNCs have their specific features. The purpose of this chapter is to analyze characteristics of Russian MNCs by researching relationship between specificities of Russian economic and political model, on the one hand, and specific features of Russian MNCs, on the other hand.


For these researches, traditional instruments of neoclassical theory are basically used.


The principal finding is that specific characteristics of Russian MNCs reflect specificities of Russia’s economic and political model. To some extent, they correlate with characteristics of MNCs of other two leading emerging economies – China and India.

Research limitations/implications

Russian MNCs operate in line with principal theories of FDI, that is, on the basis of their country and firms’ comparative advantages. However, they possess specific features: many of them are state-controlled MNCs; private MNCs are controlled by oligarchs; all of them have tight relations with offshores and offshore conduit countries. The comparison with China and India shows that some of these specific features are typical of Chinese and Indian MNCs to more or less extent.

Practical implications

The empirical part of the chapter analyzes scope, industrial and geographical profiles of Russian MNCs, their motivation and management, impact on Russian economy and regional integration.

Social implications

National MNCs with their offshore affiliates are the leading tax evasion economic agents in Russia. Moreover, stable FDI outflow reduces gross capital formation in Russia which is insufficient (19–25% of GDP) for substantial economic growth by standards of emerging economies in this decade (from 4.3 to −3.8 in Russia, from 6.8 to 9.5 in China, from 5.1 to 7.3 in India).


The principal value (originality) of the chapter is its comparatively detailed review of main aspects of Russian MNCs’ worldwide activity made from the point of view of its connection to Russia’s economic and political model.



Bulatov, A., Kuznetsov, A., Kvashnin, Y., Maltseva, A. and Seniuk, N. (2017), "Russian MNCs: Empirical and Theoretical Aspects", The Challenge of Bric Multinationals (Progress in International Business Research, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 395-421.



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