Russia has not been immune to the global economic crisis and experienced an economic downturn in 2008 and 2009. The PPP sector is no exception. By way of example, two high profile PPP projects in St. Petersburg (the Orlovsky Tunnel and the Light Rail Express) were suspended due to constraints on the public finances of the St. Petersburg government. A number of regional PPP projects were also put on hold. However, with signs of economic recovery, 2010 is seeing an increase in activity in the realisation of PPP projects in Russia. This is motivated by a need to modernise Russia’s infrastructure, which is in very poor condition and continues to deteriorate.

There is no single dedicated PPP unit. However, a procurement law exists in Russia, although it does not extend to concessions entered into under the Concession Law and relates only to the placement of “traditional” contracts for the purchase by the State of goods, works and services. Concession arrangements are not expressly carved out from the procurement law, but the procedure of entering into concession agreements is governed by the Concession Law.

In conclusion it can be seen that the Russian federal and regional authorities recognise the need for the development of infrastructure projects on a PPP basis and are taking determined steps to create the legal framework necessary to attract investors (both foreign and domestic) to such projects.

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