Business programme

Infrastructure Bonds as an Effective Development Mechanism for the Regions

17 Jun , 10:00–11:15
The Russian Economy: New Objectives and Horizons
In partnership with DOM.RF

Sanctions pressure, high inflation, and the disruption of supply chains are undoubtedly having a significant impact on the development prospects of Russia’s regional economies. Without effective state support measures, many regional projects that are supposed to be implemented this year will need to be revised due to increased project costs and rising interest rates, while some will have to be abandoned altogether. The ‘Infrastructure Menu’ that the Russian government has developed is designed to prevent a decline in the volume of infrastructure and housing construction and support key projects in the regions. One of the key mechanisms in the menu is infrastructure bonds, which are being handled by a single development institution in the housing sector represented by DOM.RF. They allow the regions to finance major projects for the construction of utility, social, and transport infrastructure at a preferential rate, both as part of housing projects and for citywide needs. Twelve projects have already been launched in eight Russian regions, and more than 50 projects worth over RUB 300 billion are currently being developed. The implementation of such projects has a multiplier effect and could serve as a locomotive to support the economy. Will it be possible to maintain the pre-sanctions pace of project implementation? What mechanisms have already produced positive results in the regions? What are the most effective implementation tools?