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Infrastructure Bonds as an Effective Development Mechanism for the Regions

6 May 2022
Инфраструктурные облигации как эффективный механизм развития регионов

The session entitled ‘Infrastructure Bonds as an Effective Development Mechanism for the Regions’ is part of the business programme of the 25th jubilee St. Petersburg International Economic Forum, which will take place on 15–18 June in the ExpoForum Convention and Exhibition Centre. 

Sanctions, high inflation and disrupted supply chains are undoubtedly having a significant impact on the development prospects of regional economies. Without effective government support measures, many regional projects scheduled for this year will need to be revised due to increased project estimates and rising interest rates, while some will have to be abandoned altogether. The ‘Infrastructure Menu’ developed by the Russian Government is designed to prevent a decline in infrastructure and housing construction and to support key projects in the country’s regions. One of the key mechanisms in the ‘menu’ is infrastructure bonds. Their operator is DOM.RF, the unified development institute in the housing sector. 

“Infrastructure bonds are an effective tool for financing large-scale infrastructure projects at a preferential rate. Regions can use this mechanism both for implementation of housing projects and for construction of municipal, social and transport infrastructure, as well as other urban development facilities,” said Vitaly Mutko, General Director of DOM.RF. 

At the moment, 13 projects have already been launched in 8 regions of the Russian Federation, and over 50 projects with a total value of over RUB 250 billion are under way. The implementation of such projects has a multiplier effect and could act as a driver to support the economy. 

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