Countercyclical Financing as a Tool for Facilitating Investment Activity in Russia: An Overview of Approaches
https://doi.org/10.35854/1998-1627-2021-12-932-942
Abstract
Aim. The presented study aims to investigate the use of the project financing mechanism to increase the investment activity of businesses and to identify opportunities for the allocation of cyclical risks and the corresponding development of project financing conditions.
Tasks. The authors briefly overview the investment climate and investment activity of large businesses in Russia; provide a general description of the project financing mechanism in the implementation of investment projects and the allocation of risks among participants; consider the factor of price volatility and the proposed structuring of project financing with allowance for potential changes in prices for the project’s products.
Methods. This study uses general scientific research methods (analysis, synthesis, induction, deduction), including analysis of public information through the example of major Russian companies, analysis of the key indicators of investment activity, analysis of risk allocation options in the financial flows of projects. Specific methods of financial analysis are also used to examine the results of the implementation of investment projects.
Results. The key indicators of investment activity of the major Russian companies are presented. The possibility of using the mechanism of project financing and risk allocation among participants is determined.
Conclusions. The investment activity of a considerable part of large Russian businesses is moderate. At the same time, there is a huge potential for growth using either internal funds (profits, accumulated cash balances) or project financing instruments. An example of using the mechanism of accelerated repayment of debt financing is provided.
About the Authors
N. V. Tsekhomskiy
National Research University “Higher School of Economics”
Russian Federation
Russian Federation
Nikolay V. Tsekhomskiy, PhD in Economics, Associate Professor of the Department of the Theory and Practice of Business-Government Interaction, First Deputy Chairman — Member of the Management Board of VEB.RF
20 Myasnitskaya Str., Moscow 101000
D. V. Tikhomirov
Financial University under the Government of the Russian Federation
Russian Federation
Russian Federation
Dmitriy V. Tikhomirov, PhD in Economics, Professor of the Department of World Finance, Director of Financial Modeling at VEB.RF
49 Leningradskiy Ave., Moscow 125993
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Review
For citations:
Tsekhomskiy N.V., Tikhomirov D.V. Countercyclical Financing as a Tool for Facilitating Investment Activity in Russia: An Overview of Approaches. Economics and Management. 2021;27(12):932-942. (In Russ.) https://doi.org/10.35854/1998-1627-2021-12-932-942
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