MOSCOW. Feb 22 (Interfax) - Foreign investment in the Russian economy stood at $120.9 billion in 2007, up 120% compared with 2006, the Federal Statistical Service reported on Friday.

The reasons for the rise are a significant increase in the volume of loans taken abroad and growing direct foreign investment.

Direct foreign investment doubled compared to 2006 to $27.8 billion (in 2006 the rise was merely 4.6%) with capital investment amounting to $14.8 billion (68.7% up), loans received from foreign partners in companies to $11.7 billion (200% up), leasing to $82 million (8.1% down), and other direct investment to $1.3 billion (36.4% up).

Portfolio foreign investment in Russia stood at $4.2 billion in 2007 or 31.8% more than in 2006, including investment in stocks and shares of $4.1 billion (40.5% up).

Other investment in Russia rose 130% compared to 2006 to $88.95 billion, with trade loans amounting to $14.01 billion (51.3% up), and other loans to $73.8 billion (160% up), out of them for a term of up to 180 days - $3.4 billion (12.2% up), and for a term of more than 180 days -$70.3 billion (180% up). Other investment skyrocketed 120% to $1.2 billion.

The bulk of foreign investment was in wholesale and retail trade, repair of motor vehicles and motorcycles, household appliances and personal goods ($47.3 billion) with Great Britain investing $16.9 billion, Cyprus $9.4 billion and Luxembourg $7.9 billion.

Also $17.4 billion was invested in the extraction of minerals. The Netherlands was the indisputable leader in this sector with $12.7 billion.

Foreign investment in processing industries amounted to $31.9 billion (out of that amount $7.3 billion from Great Britain, $4.6 billion from France and $4.3 billion from Switzerland), in transactions with real estate, leasing and services to $8.4 billion (from Cyprus $3.9 billion), and in transport and communications to $6.7 billion (from Ireland $2.8 billion).

Accumulated foreign investment in the Russian economy at the end of 2007 totaled $220.6 billion, jumping 54.3% compared to the end of 2006.

Other repayable investment constituted the bulk of the accumulated foreign investment (loans of international financial institutions, trade loans) at 50.2% (49.1% at the end of 2006); the share of direct investment was 46.7% (47.5%) and portfolio investment - 3.1% (3.4%).

Key countries from which investment originated were Cyprus (accumulated investment at the end of 2007 of $49.6 billion), the Netherlands ($39.1 billion), Great Britain ($29.2 billion), Luxembourg ($29.2 billion), Germany ($11.8 billion), the United States ($8.6 billion), Ireland ($7.1 billion), France ($5.9 billion), Virgin Islands ($4.8 billion) and Switzerland ($4.8 billion). Together, they were responsible for 86.2% of total accumulated investment.

In 2007 Great Britain was the leader in investment in Russia ($26.3 billion), followed by Cyprus ($20.7 billion), the Netherlands ($18.8 billion), Luxembourg ($11.5 billion), France ($6.7 billion), Switzerland ($5.3 billion), Ireland ($5.2 billion), Germany ($5.1 billion), the United States ($2.8 billion) and the Virgin Islands ($2.1 billion).