Column by Oleg Pankratov, Head of Infrastructure Capital and Project Finance at VTB Capital, for BNE
Overcoming infrastructural constraints in the economy remains a key objective of policymakers in Russia in order to secure a substantial increase in long-term GDP growth. In the face of the external economic reality, investors in infrastructure face a number of challenges in the further development of public-private partnership (PPP) in Russia. Indeed, the state should shift its focus on attracting private capital to encourage the development of the infrastructure market in the country. Moreover, all investors actively involved in the infrastructure market are currently receiving clear signals that the government will continue to implement large-scale infrastructure projects, primarily on the basis of PPP which entails that a significant part of the financing should come from extra-budgetary sources. This is clearly a boon for investors that are looking at the Russian market.