Russia has a significant need for large-scale investment in infrastructure and natural resource extraction. It is generally accepted that these needs can only be met through foreign direct investment (FDI). Without an inflow of capital and know-how, Russia will miss chances to grow its entire economy and lose export revenues. This article pays special attention to the conditions for attracting large-scale FDI, which today is increasingly realized through the creation of project finance structures.
The study examines how the lack of investment in the natural resource sector can be overcome through the application of project finance structures, which have not yet been used in Russia. The main characteristics of project finance are reviewed, its opportunities compared to traditional corporate finance are emphasized, the most common obstacles hindering the implementation of project finance schemes are considered, and the necessary steps to improve the situation are outlined.
