The purpose of the study As the goal of this work defined a comprehensive study of the essence of project financing and finding opportunities for its implementation in the Russian context. The stated goal logically led to the formulation and solution of the following tasks: 1. the review and update of the conceptual project financing; 2. performing risk analysis and project financing; 3. search of approaches to minimize the risks for the method of project financing. Research methods General scientific methods of cognition (synthesis, induction, deduction, classification, system and factor analysis constituted the methodological basis of research. The results of the study In the framework of the conducted research the following results are obtained: 1. The essence and clarify the definitions used in project financing, determined by its place in modern investment processes. 2. The basic differences of project financing from long-term investment lending, which consists in the fact that the project financing mechanism provides an opportunity to implement more reliable and effective assessment of the creditworthiness of the borrowers, to analyze investment projects in terms of their viability, feasibility, financial security, risk, and minimize project risks. 3. The developed model of project financing of investment projects. 4. A classification of risks that are typical for project financing. 5. 4 proposed strategies for a method of project financing in order to minimise risks. Conclusion The method of project financing, which is worldwide considered as a major political and economic tools in Russia has not yet received due development. This led to the fact that the Russian participants of the investment activities are forced to use a less efficient mechanism for long-term investment or lending tools and analogies learned from foreign law. Since the traditional Russian approaches and under existing law because of their lack of competitiveness in project Finance transactions are not used, requires further adapt the mechanism of project financing in the Russian conditions. Scientific novelty Scientific novelty of research consists in statement, a theoretical substantiation and resolution of complex issues involved: • systematization of the existing approaches to understanding the project financing; • clarifying the conceptual framework of project financing. Refined interpretation allows us to consider project Finance as a system, including related parties of the investment process (banks; insurance companies; initiators of investment projects; logistics organisations; service providers, etc.). This system is formed in order to implement investment projects in which the sources of debt repayment and returning cash to become produced by the project cash flows; • with the development of a 3-step model of project financing of investment projects; • with the creation of the modern classification of risks of project financing, under which the allocation of legal risks, risks of lack of access to land, design risks, construction risks, economic risks, price risks, leasing risks; • approaches that minimize risks during implementation of investment projects with use of project financing mechanisms. The essence of these approaches is to introduce into the working scheme of project financing of the special tools (internal control procedures, transfer of risk to professional agents split cash flows, risk differentiation between the main contractors).