Adaptation of Ruusia's Foreign Direct Investment Policy to the Conditions of Sanctions Pressure and Labor Shortage

Currently, due to the events of 2022 and the subsequent sanctions pressure, Russia is undergoing many socio-economic changes. External shocks have impacted the foreign direct investment (FDI) market, creating new obstacles to capital mobility and cooperation with developed countries. The previously progressive state of the labor shortage has become more acute, as well. In light of these circumstances, it is essential to find new ways to shape public policy in order to ensure its effectiveness and relevance. The purpose of this research is to develop recommendations for further development of Russia's state policy regarding FDI in order to improve current economic conditions. Through analysis, it was confirmed that at this stage, the Russian labor market is in a state of deficit, which was already present prior to 2022 but has been exacerbated by subsequent sanction pressure. At the same time, there has been an active growth in fixed assets on the capital market that is not supported by improvements in production technology. This has led to a decrease in labor productivity. The FDI market is also stagnant with a high level of offshore activity. To address these issues, a model was developed to analyze the relationship between the labor market, capital, FDI, and technological development in Russia. Based on this analysis, it was determined that high-quality FDI could be beneficial for the Russian economy and labor market. Based on this analysis, recommendations for public policy in the area of FDI were proposed. These recommendations include developing direct investment relations with developing countries and hosting high-tech industries in Russia, while transferring labor-intensive processes to other developing nations. An additional priority has been given to shifting the focus from FDI relations with China towards other EAEU and BRICS states. Priority-based recommendations include the creation of an interdepartmental body for the development of FDI, the prioritization and development of technical and innovation special economic zones, and the development of specific indicators to assess the effectiveness of the FDI policy.