On the transformation of Russian savings into investments and on the obstacles holding back this process

The article aims to uncover the relationship between the total national savings and real sector investment of the Russian economy, as well as to identify ways to ensure their dynamic alignment at an optimal level in the foreseeable future. In justifying the reasons and methods for overcoming the existing imbalance, the author emphasizes the impact of the paradox of thrift, which leads to deterioration of the investment climate due to people’s low consumer activity. Additionally, the article highlights the significant share of unorganized savings among Russians due to their lack of trust in the domestic financial system, their preference for keeping their savings in convertible currency, and the relative immaturity of the Russian stock market.

The article also explores the mechanism of the negative impact of the deficit (as well as the surplus) of the federal budget on the level of private and public investments in the domestic economy. The main focus of the article is on analyzing the reasons for the net capital outflow from Russia as a factor resulting in insufficient real investments compared to the level of domestic savings. This includes an examination of the contribution to this outflow not only from households and private companies but also from the government, which, during the pre-sanction period, preferred to invest the funds of sovereign wealth funds in financial assets of other countries instead of using them to stimulate investment in the national economy.