Analyzing the financial sustainability of priority development systems set up in the Far Eastern regions of Russia

Abstract

Subject. The article examines economic systems of priority development that are established in the Far Eastern regions of Russia. Objectives. The study is to analyze key financial and economic indicators of the financial sustainability of residents and priority development areas (PDA), where they operate, to forecast and determine the future development, enhance the competitiveness, lucrativeness for investors and performance. Methods. Research is based on methods of correlation and regression analysis, grouping, systematization, comparison and analysis, ratios. Results. We analyzed financial sustainability indicators of PDA by group of residents, which were sorted by scope of their operations, lifecycle phase of projects and type of activity. The article indicates key sources of funds and a lack of additional investment. Conclusions and Relevance. Analyzing the financial sustainability of PDA, we point out that most residents have sufficient capital invested, which is needed to implement investment projects, and operate in the favorable financial environment. However, financial resources can be multiplied mainly with funds raised, which can possibly put the financial security at stake. We point out noticeable unprofitability, on the one hand, which is typical of average indicators of the region. However, on the other hand, it results from the investment phase of some projects. Investors may refer to the analysis of the financial sustainability of residents and PDA to ensure the development and have the stable return on investment, protect their investment resources. The findings can be also interesting for creditors to have a comprehensive view of the borrower's solvency and creditworthiness of counterparts, while authorities and managing companies can rely on it to monitor the development of the economic system, outline economic security actions for the Far Eastern regions of Russia.