Impact of sanctions on the inflow of Foreign Direct Investment in Russian oil and gas industry

The main aim of this master thesis is to study how anti-Russian sanctions influenced the inflow of Foreign Direct Investment to the Russian oil and gas sector. The problem statement relies on understanding the factors that impact on the FDI amount beside sanctions. In order to comply with these objectives, econometric models were built based on the dataset collected from the Unified Interdepartmental Information and Statistical System, Federal State Statistics Service, official websites of oil companies, and Central bank of the Russian Federation.The master thesis is structured in five main chapters. The first chapter is introduction, referring to aim, scope, hypotheses and methodology. The second chapter is literature review, addressing the academic background foreign direct investment and factors that may affect the inflow of FDI in the oil and gas industry. The third chapter represents sanctions that were imposed against Russian and the trend of FDI in the Russian oil and gas industry before and after imposing sanctions. The fourth chapter is devoted to the justification of chosen variables, correlation matrix, analysis of data, and empirical estimations. The last chapter is conclusion, where based on the results from the empirical part, it was concluded that sanctions do not have a significant effect on the FDI in short-term.