State Incentives for Investment Projects Using Project Financing

Abstract

Within the tendency of reducing budget expenditures for infrastructure and the urgent need to build new and modernize existing industry facilities, the project financing mechanism is becoming one of the most important instruments of financing for investment projects in Russia. This determines the relevance of the study conducted by the authors. The paper is devoted to the analysis of the use of the state project financing. The first attempts to establish project financing in the Russian Federation are described, as well as the problems of implementing various programs in modern conditions are studied. The paper considers the stages of selection of investment projects in Russia with the identification of criteria for such selection. The interest rates of refinancing in terms of their dynamics were analyzed. The authors analyzed the government incentives for business in the implementation of investment projects using project financing, which is based on the use of such well-known scientific methods as system analysis, comparative analysis, modeling, observation. Based on the results of the analysis, conclusions were drawn on the need to use project financing with state support during crisis periods of the country’s development. The paper studies the mechanism of project financing of investment projects in priority sectors of the Russian economy, providing for the advance of funds to borrowers on the basis of syndicated loan agreements. Moreover, the performed analysis revealed a special role of the state corporation Vnesheconombank (now VEB.RF) in project financing, which is an authorized bank for the provision of preferential loans.