Speaking at the plenary session of the Eastern Economic Forum (EEF) in Vladivostok on September 3, Russian President Vladimir Putin requested the Government and the Central Bank of Russia to carefully study the establishment of a modern financial center based on the Eastern Exchange.
According to Mr. Putin, Russia needs to take advantage of the potential of this exchange to expand the participation of international capital in projects in the Far East and the Arctic.
To expand the participation of international capital in projects in the Far East and the Arctic, we need to take advantage of the potential of the Eastern Exchange. As I said earlier, we intend to establish a modern financial center based on this exchange," Putin said.
The Russian leader requested the Government and the Central Bank of Russia to comprehensively study relevant issues, thereby building a suitable mechanism for the new financial center.
This move is part of Russia's plan to develop financial instruments to support large-scale projects in the eastern and northern regions of the country.
Besides the financial center, Mr. Putin said that Russia has put into application the national standard on public-private partnerships (PPP) since September 1.
This standard was built with the participation of Vnesheconombank, a state-owned development bank of Russia, to create a unified basis for the implementation of infrastructure projects in the form of cooperation between the State and the private sector.
According to Mr. Putin, the goal of the new standard is to allocate risks more effectively, while improving the efficiency and profitability of investments in infrastructure.
The Russian President also mentioned the long-term financial model built to attract long-term capital flows into PPP projects, mainly through the issuance of concessional bonds.
He requested relevant agencies to monitor how this model operates in practice and adjust if necessary.
The development of new financial instruments is expected to create additional capital for infrastructure projects, while increasing the ability to attract international investment into the Far East and the Arctic.
