Legal impediments

Legal impediments to non-sovereign financing of infrastructure in Russia

This report  (0.3Mb) identifies specific provisions of Russian legislation that hamper the Bank’s own non-sovereign lending activities in the infrastructure sector, as well as potential PPP activities, and generally discourage an inflow of investment into the country. As the date of the Report suggests it takes into account the enactment in 2005 of the new Russian Law on Concession Agreements.

The Report is a result of a project, the objectives of which were to (i) identify existing legal impediments to non-sovereign lending and PPPs in Russia, (ii) identify potential legal impediments to Government’s undertakings and guarantees, as per global best-practice PPP arrangements, and (iii) propose ways to tackle such impediments and remedy the situation.

The desired outcome of the project is, therefore, a move by the Russian Government to further amend existing legislation, and/or to introduce such new legislative acts as may be necessary, which, taken together, would create the prerequisite legal framework for attracting private investment and commercial lending into the sector, as well as enable the Russian Government to provide additional undertakings and conditional guarantees, as may be required, to investors and lenders