Investment Attractiveness of the Russian Energy Sector Mncs: Assessment and Challenges

Abstract

Being the most important economic sectors, the energy sector provides significant profits for the Russian economy and is largely dependent on the functioning of several multinational corporations such as Rosneft, Gazprom and Lukoil. Investments in these companies have always been important drivers for the Russian economy. New conditions of the global economy create serious challenges for the sector; therefore, the investment attractiveness of the sector is changing. The authors propose a new approach to the analysis of investment attractiveness, based on the conjugation of technical financial analysis, reflecting the internal factors that affect the companies' performance, and the SWOT analysis of the industry combined with the Doing Business Rankings that give a full picture of the external factors of investment attractiveness. This methodology makes it possible to identify the main specific characteristics of Russian MNCs and develop an investment strategy in the Russian energy sector in the current difficult times. Another result is a strategy for the development of the Russian energy sector in order to attract additional investment. The novelty of the article includes the implied methodology of investment attractiveness and evidence of the high investment attractiveness of the Russian energy sector even in unstable conditions, especially in the COVID economic shock.

Renewable energy adoption in multinational energy companies: A review of strategies and impact

“…The energy sector is also influenced by technological advancements and innovation management, particularly in the context of energy efficiency improvements and renewable energy sources (Cantini et al, 2021;Sitek & Tvaronavičienė, 2021). The investment attractiveness of the energy sector, particularly in the case of Russian energy sector multinational corporations, has been assessed, highlighting the significant profits provided to the Russian economy and the challenges faced by these companies (Gorodetskaya et al, 2021).…”

Formulating the Concept of an Investment Strategy Adaptable to Changes in the Market Situation

“…Combined market-part of the market information is distributed instantly, is publicly available, and directly reflected in the price of the asset; the other part is reflected with a delay or indirectly (Gataullin et al 2020;Gorodetskaya et al 2021;Yerznkyan et al 2019).…”