Change of the Attitude of Japanese Investors to the Investment Climate of Russian Federation in XXI Century

The present paper examines the modern period of Russian-Japanese investment relations, which is characterized by a decrease in Russian-Japanese investment cooperation. The goal of this study is to identify the main changes in the attitude of Japanese investors to doing business in the Russian Federation in the 21st century. The main analysis is based on official surveys of Japanese entrepreneurs conducted for several years by the Japanese Business Federation Keidanren and the Japanese Organization for the Development of Foreign Trade JETRO. Among the factors that reduce the willingness of investors from Japan to invest capital there is legislation on foreign investment, lack of unification, customs and visa clearance, tax system, licensing activities and complex administrative procedures, competition from other companies in the sector, insufficiently developed infrastructure, access to finance, human resource management, language barriers, corruption and bureaucracy. The main changes were that investors' expectations of profit increased at the expense of sales growth, the role of exchange rate fluctuations decreased as the main risk of lowering operating profit, emergence of a new political risk factor associated with the sanctions policy of Western states, and progressing desire to increase cooperation in high-tech industries. Based on reveled priorities and changes in the attitude of Japanese entrepreneurs, the author has compiled a number of thematic recommendations for the Russian and Japanese sides with the goal of building harmonious investment relations. They include legislative initiatives, simplifying administrative processes, enhancing cooperation between Japanese investors and state authorities, reducing state intervention in the economy, supporting domestic entrepreneurs, improving infrastructure and information space, reducing corruption and creating special investment conditions for Japanese entrepreneurs.