What effect will deprivatization have on foreign investments in Russia?

Deprivatization had a significant impact on Russian foreign investments. Firstly, deprivatization in Russia led to substantial wealth loss to a big group of new Russian investors. This is because privatization was a crucial generation of wealth to investors. Through privatization, the profit margins of the foreign investments were high.

Secondly, deprivatization in Russia led to a reduction of share ownership of foreign investments. When there are more public firms than private firms, more investments are made locally than internationally. Most Russian investors were limited to making investments since most of the shares available were public -owned. The general public in Russia had less say in the private sector.