Putting Long-Term Capital to Work for Infrastructure Development

Putting Long-Term Capital to Work for Infrastructure Development

2 June, 12:00–13:15

Traditionally there has been more money available to invest in Russian infrastructure than projects ready for implementation, leaving large private banks, insurance companies, and national and international development institutes unable to get a slice of the business. Around RUB 2 trillion in public and private funds could be invested in infrastructure; however, there are a number of reasons why this money is yet to be deployed. What steps should be taken to effectively take advantage of current PPP opportunities and ‘reactivate’ available funds? What new innovative financial instruments could investors utilize? What is holding back private capital?


Key moments

Investments should be profitable. Infrastructure projects bring in profit for their investors. And our quality of life can improve as a result.
Sergei Belyakov
President, Association of Non-State Pension Funds (ANPF)
Concession contracts are among the most efficient ways of implementing complex, capital-intensive projects, as they maintain a healthy balance between the interests of government, equity investors and backers.
Sergey Nekrasov
First Vice-President, Gazprombank (Joint - stock Company)
Money should be spent on issuing guarantee instruments for long-term projects, not on subsidies.
Mikhail Kuzovlev
Chairman of the Management Board, PJSC ROSSIYSKY CAPITAL
Pension funds are a good sort of strategic investor investing people’s assets in the national economy and enabling them to make money out of its growth.
Sergei Belyakov
President, Association of Non-State Pension Funds (ANPF)
The government should stimulate transfer of short-term deposit balances into long-term investments.
Nikolay Tsekhomskiy
First Deputy Chairman of the Management Board, Bank for Development and Foreign Economic Affairs (Vnesheconombank)
Maturity issues can be resolved by managing interest rate risks using project structuring, structuring of cash flows via floating rates, and issue of financial instruments with floating interest rates.
Dmitriy Pankin
Chairman of the Management Board, Eurasian Development Bank (EDB)
Investors aren’t so much willing to invest in a project as they are in an institution they trust. Greater entrepreneurial activity, including investment, and greater trust in institutions that have proved themselves as being well-intentioned and trustworthy will help us embrace project investment.
Evgeniy Ditrikh
First Deputy Minister of Transport of the Russian Federation
As interest rates are normalized and macroeconomic stability is established, long-term money should become more abundant. There are grounds for emergence of such money.
Nikolai Podguzov
Deputy Minister of Economic Development of the Russian Federation