The Moscow Financial Forum held a session on “Infrastructure Development Investments: Private Financing Potential” on September 6. Speakers discussed the most efficient mechanisms of attracting private investment to infrastructure projects, also touched upon the major issues in current law related to public-private partnership.

According to Rachik Petrosyan, Deputy Head of the Federal Antimonopoly Service of Russia, major infrastructure projects are hard to implement without public finance. That said, the main factor to constrain public investment is unclear legal regulation.

Vladimir Efimov, Minister of the Government of Moscow, Head of the Department for Economic Policy and Development of Moscow, believes that legislation has to provide state investors with transparency, and private investors with flexible contracts. In his opinion, the law in effect fails in terms of flexible and sufficient tools for managing investment processes.

“Moscow has to solve many issues through subsidiaries. Corporate law provides both parties with more opportunities for building up relationship,” emphasizes the Minister of the Government of Moscow.

Efimov is confident that both parties must realize themselves as partners and bear their responsibilities.

“Should the state fail to see itself as a partner and share the risks, so fails a project,” clarifies Vladimir Efimov. “We should keep in mind that it is not only the investor who earns money from a project, but also the Government that saves the budget funds. Therefore, we should treat it as a mutually beneficial cooperation.

To recap, the Government of the Russian Federation is working on creating a fund for infrastructure investment. The fund is planned to reach 3% of the GDP.