Russia is now again one of the 10 largest economies in the world. Additionally, it is the EU’s 3rd largest trading partner, and an essential energy supplier. This recovery makes Russia an economic – and political – actor in Europe that cannot be ignored.This Country Focus describes Russia’s much improved recent record as a destination for foreign investment, in which the EU, as by far the largest investor in Russia, has played a major role. It then examines how this recent development could be turned into a long-run trend, namely by improving the legal framework and investment climate in the country. The EU, as the main investor in Russia and largely dependent on it for energy (an industry in which a more liberal FDI framework is needed in some sectors), has a clear strategic interest in this process.