Abstract
Purpose: The purpose of the article is a comparative study of models of state investment policy, project financing and mechanisms for the implementation of investment projects on the example of the Russian Federation and EU countries.
Design/methodology/approach: The authors compared legal, regulatory, institutional, financial and credit, dues instruments for implementing the investment policy of Russia and the European Union. Modern methods of modeling investment projects in innovative, system-forming, socially oriented sectors of the economy. The paradigms of improving the quality of fixed investment and in the growth of their volume in GDP have been analyzed. Promising approaches to preventing investment risks have been highlighted.
Findings: The factors holding back the PF: insufficient legislative framework; low level of market and investment infrastructure; lack of a common information base; high design risks and lack of development of the system of management of them; low level of corporate governance; lack of long-term sources of financing deals; undeveloped methods and practices for pf transactions; high cost of capital due to the instability of the banking sector; duration of the project selection process for funding.
Originality/value: Promisingly differentiating credit conditions depending on the social and economic importance of the investment project and its resource efficiency. The initiators of such projects may be given preferences under special contracts. Responsible financing standards should determine the requirements for assessing the effects of enterprises performing investment projects. A favourable investment climate contributes to attracting the incomes of working immigrants and foreign entrepreneurs to the investment projects.
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Notes
- 1.
Pf is interpreted as a means of regression financing, which means the requirement to reimburse the amount provided as a loan. PF involves the provision of loans to the company directly created. Debt repayment is carried out through the cash flows of PIs. Debt repayment is carried out through the cash flows of PIs.
- 2.
For example, the increase in foreign investments in 2016 is due to the acquisition of about 20% of Rosneft’s shares by an international consortium (Switzerland, Qatar).
- 3.
A draft of the Federal Law on the “Protection and Promotion of Investment in the Russian Federation and amendments to certain laws of the Russian Federation” (prepared by the Russian Ministry of Finance). Not included in the State Duma of the Federal Assembly of the Russian Federation (text as of 26 October 2018).
- 4.
“National rating of the state of the investment climate in the subjects of the Russian Federation”. - Website of the Russian Union of Industrialists and Entrepreneurs, available at: https://asi.ru/investclimate/rating/ (accessed: 12 August 2019).
- 5.
A revised draft law on the protection and promotion of investment in the Russian Federation and amendments to certain laws of the Russian Federation (prepared by the Russian Ministry of Finance 23 Nov. 2018). - The website of the reference and information portal “GARANT”, available at: https://base.garant.ru/56778955/ (accessed: 02 August 2019).
- 6.
Federal Act of 31 December 2014 №. 488-FZ “On industrial policy in the Russian Federation” Russian Government Decree, July 16, 2015 № 709 “On special investment contracts for certain industries”.
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Galas, M.L. (2020). Foreign Investment as a Factor of Economic Progress: Russian and European Vectors. In: Popkova, E., Sergi, B. (eds) Scientific and Technical Revolution: Yesterday, Today and Tomorrow. ISC 2019. Lecture Notes in Networks and Systems, vol 129. Springer, Cham. https://doi.org/10.1007/978-3-030-47945-9_171
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