The digitalization of the economy opens up new opportunities for business and the development of interstate investment cooperation, which is caused by the objective strengthening of globalization processes at all levels. The impact of digital technologies on all sectors of the economy is constantly growing. Digital technologies have become the main drivers for financial market transformation, FDI flows development and created new challenges for the next few years. German-Russian investment relations are closely linked to political and digital transformation which requires developing and introducing new solutions that enable interaction among market participants, so the analysis of investment relations between Russia and Germany in the context of digital transformation is relevant for the study. German FDI in Russia and Russian FDI in Germany are presented in the article. Geographical distribution of Russian and German investments are studied. Sustainability of Russian direct investment in Germany is discussed. Industries of investments in the context of digital transformation are defined. Particular attention has been paid to the problems in the field of investment, which have hampered mutually beneficial cooperation between these countries. The prospects for the development of Russian-German relations and the efforts of the Russian side to revive an effective economic policy are considered.
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