ABSTRACT
An admittedly small group of Russian lenders has developed a significant portfolio of project financing, and some international banks have focused on Russia. The technique is now perceived as crucial to the funding of the capital expenditure requirements of many sectors of the Russia economy, from oil and gas to infrastructure and industrial projects. Some sectors, notably oil and gas, did enjoy high levels of investments in the years since the collapse of the Soviet Union, but still need more, whilst others such as infrastructures still rely on Soviet-era assets. The Russian reliance on foreign funding eventually resulted in a deep drop in GDP, in the need for urgent injection of liquidities into the Russian banking system by the Government, and in the use of accumulated reserves. There are many regulatory aspects that need to be taken into account for Russian projects, beyond the permitting regime for many projects requires careful planning depending on the industry.
