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Vol 174
Pages:
171-174
Download volume:
RUS

Large scale investments in Russia’s infrastructure and natural resources sector

Authors:
Thomas Schumann
About authors
  • TU Bergakademie Freiberg
Date submitted:
2007-07-06
Date accepted:
2007-09-23
Date published:
2008-01-01

Abstract

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.

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References

  1. Bradshaw M. (2006): Sakhalin Projects Show Why Russia Still Needs Foreign Investors, in: Pacific Russia Oil & Gas Report, Winter 2005/2006, URL: www.geog.le.ac.uk/staff/mjb41/articles/Sakhalin_Foreign_Investors.pdf.
  2. EBRD (1997): Sakhalin II (Phase 1) Oil Project – Project Summary Document, URL: www.ebrd.com/rojects/psd/psd1997/3321.htm [access: April 24, 2007].
  3. EBRD (2001a): Natural Resources – April 2001, London (EBRD).
  4. EBRD (2001b): Transition Report 2001 – Energy in Transition, London (EBRD).
  5. EBRD (2005): Sakhalin II (Phase 2) Oil Project – Environmental Impact Assessment, URL: www.ebrd.com/projects/eias/russia/5897.htm [access: April 24, 2007].
  6. Esty B.C. (2003): The Economic Motivations for Using Project Finance, Harvard Business School (mimeo), URL: www.people.hbs.edu/besty/BCE%20PF%20Motivations%202-14-03.pdf.
  7. Esty B.C. (2004): Why Study Large Projects? An Introduction to Research on Project Finance, in: European Financial Management, 10(2), pp. 213-224.
  8. Esty B.C., Megginson W.L. (2003): Creditor Rights, Enforcement, and Debt Ownership Structure: Evidence from the Global Syndicated Loan Market, in: Journal of Financial and Quantitative Analysis, 38(1), pp. 37-59.
  9. Financial Times (2007): Project Finance Jumps 35 %,URL: www.ft.com [access: April 24, 2007].
  10. Garibaldi P., Mora N., Sahay R., Zettelmeyer J. (2002): What Moves Capital to Transition Countries? IMF Working Paper 02/64.
  11. Hainz C. (2002): Project Financing in Transition Economies, in: Forost Arbeitspapier Nr. 5 – Transition Economies: Cyclical Behaviour, Tariffs and Project Financing, p. 29-48.
  12. International Herald Tribune (2006): S&P Finds Little Progress on Transparency in Russia, URL: www.iht.com/articles/2006/11/08/business/ruble.php [access: April 24, 2007].
  13. Liuhto K. (2007): A future Role of Foreign Firms in Russia’s Strategic Industries, Electronic Publications of Pan-European Institute 4/2007, URL: www.tukkk.fi/pei/verkkojul-kaisut/liuhto_42007.pdf [access: April 24, 2007].
  14. PMR Publications (2006): Russia’s Construction Industry: Profits up by Nearly 70 %, URL: www.pmrpublications.com/index.php?pr_id=55 [access: April 24, 2007].
  15. The Banker (2004): Russia’s Project Finance Challenge, Special Supplement October 2004, London (FTB).
  16. Yescombe E.R. (2002): Principles of Project Finance, Amsterdam et al. (Academic Press).

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