Corporate investment management (стр. 3 )

carrying out tenders among investors, selection and approval of investment projects; licensing and granting quotas for manufacture of products, fixing interest rates and taxation rates. Financing activities of the government, of regional and local authorities on the side of supply and demand substantially affects the participants' behavior patterns in the financial market.

For the purpose of the investment, the use by the investee company of its equity capital, borrowed capital and loans in various combinations shall be determined by both local and external factors. The purposes of investments for a short-term and long-term period may include: acquisition of plant and equipment, land; construction of industrial and non-industrial facilities and objects; purchase of securities, shares, bonds, etc.; upgrade of educational level, professional qualifications; purchase of licenses and patents for manufacture of some particular products or for provision of services; depositing cash into a deposit account with banks at a specific interest rates; renewal of disposed fixed assets, etc.

Characteristics of directions for investments into fixed capital in the Russian economy in the period from 2001 to 2006 and composition of investments into financial assets are given in Tables 5 and 6, accordingly.

Variety of purposes of this or that particular company causes variances in the final result and in the method of such result to be achieved. Nevertheless the following features are common for all types of investment: removal of resources from circulation for a particular period; planning certain benefits to be obtained in the future rather in the current period, and selecting optimum ways for achievement of purposes that ensure:

Table 5

Directions of the investments into fixed assets

in percent of the total

Composition of investments	New construction	Modernization and reconstruction
2001	2004	2001	2004
Investments into fixed assets	100	100	100	100
also including: buildings and structures	69,3	76,1	38,9	52,0
plant and machinery	24,7	14,3	53,8	43,3
Transport vehicles	1,6	0,1	5,3	2,8
Other	4,4	9,5	2,0	1,9

Source: Investitsii v Rossii. 2005: Statistics digest /Rosstat. – М., 2005, page 42.

rational utilization of funds and normal functioning of the core potential of the company and increment in same to improve the welfare of the employees. Therefore, it is difficult to overestimate the significance of investments for development of the Russian economy as a whole.

The purposes of investments in terms of social reproduction:

- recovery of fixed assets to ensure stability of social production functioning;

Table 6

Description of investments into fixed ASSETS

description Years	1995	2000	2001	2002	2003	2004	2005
position of investments by forms of ownership (in percentage of total)
Investments into fixed capital – total	100	100	100	100	100	100	100
also including those grouped by the form of ownership of investors (clients):
Russian	97,3	86,3	85,5	85,7	84,1	85,0	79,0
Governmental	31,3	23,9	22,1	20,2	21,0	17,5	24,3
Municipal	6,3	4,5	4,9	4,7	4,3	4,2	4,5
Private	13,4	29,9	36,7	42,0	41,2	47,5	33,7
Public and religious organizations (associations)	0,1	0,1	0,1	0,1	0,1	0,1	0,1
Consumers cooperatives	-	0,1	0,1	0,1	0,1	0,1	0,1
Mixed Russian	46,2	27,8	21,6	18,6	17,4	15,6	16,3
Foreign	-	1,5	2,3	3,6	4,1	5,6	7,3
Joint Russian and foreign	2,7	12,2	12,2	10,7	11,8	9,4	13,7
position of investments by source of finance (in percent of total)
Investments into fixed capital – total	100	100	100	100	100	100	100
Including those grouped by source of finance:
Equity capital	49,0	47,5	49,4	45,0	45,2	45,4	47,7
therefrom:
profit left at the disposal of entity	20,9	23,4	24,0	19,1	17,8	19,2	22,4
depreciation	22,6	18,1	18,5	21,9	24,2	22,8	22,1
raise capital	51,0	52,5	50,6	55,0	54,8	54,6	52,3
therefrom budgetary funds (funds of consolidated budget)	21,8	22,0	20,4	19,9	19,6	17,9	20,1
including:
from the federal budget	10,1	6,0	5,9	6,1	6,7	5,3	6,7
from the budgets of the RF subjects	10,3	14,3	12,5	12,2	12,1	11,6	11,4

Source: Investitsii v Rossii. 2005: Statistics digest/Rosstat - M., 2005, pages 45, 46; Osnovnye pokazateli investitsionnoi i stroitelnoi deyatelnosti v Rossiiskoi Federatsii. No: Statistics digest /Rosstat. - M., 2005, p. 7.