A socially oriented non-financial development institution and a major organizer of international conventions, congress, exhibitions, business, social and sporting, public, and cultural events.

The Roscongress Foundation is a socially oriented non-financial development institution and a major organizer of international conventions; exhibitions; and business, public, sporting, and cultural events. It was established in pursuance of a decision by the President of the Russian Federation.

The Foundation was established in 2007 with the aim of facilitating the development of Russia’s economic potential, promoting its national interests, and strengthening the country’s image. One of the roles of the Foundation is to comprehensively evaluate, analyse, and cover issues on the Russian and global economic agendas. It also offers administrative services, provides promotional support for business projects and attracting investment, and helps foster social entrepreneurship and charitable initiatives.

Each year, the Foundation’s events draw participants from 208 countries and territories, with more than 15,000 media representatives working on-site at Roscongress’ various venues. The Foundation benefits from analytical and professional expertise provided by 5000 people working in Russia and abroad. In addition, it works in close cooperation with 160 economic partners; industrialists’ and entrepreneurs’ unions; and financial, trade, and business associations from 75 countries worldwide.

The Roscongress Foundation has Telegram channels in Russian (t.me/Roscongress), English (t.me/RoscongressDirect), and Spanish (t.me/RoscongressEsp). Official website and Information and Analytical System of the Roscongress Foundation: roscongress.org.

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Innovations and Investment Driving Broad Regional Development
3 June 2021
11:00—12:15
KEY CONCLUSIONS
An ‘infrastructure menu’ will contribute to comprehensive regional development

You know that 2020 was not an easy year, yet the construction industry completed RUB 9.5 trillion worth of construction work. This is more than in 2019 […] The tasks that have been set for us by the national goals cannot be fulfilled without the fundamental changes that are needed in our territory. We have made a lot of these changes. In particular, regulatory support. The constituent entities are adopting the appropriate legislation, and the infrastructure menu that we have calls for RUB 500 billion in infrastructure loans to the regions [...] This entire mechanism needs to be implemented really actively in the specific projects that our regions are preparing today — Irek Fayzullin, Minister of Construction and Housing and Communal Services of the Russian Federation.

The infrastructure menu that is being offered to the country’s regions today is extensive and includes three general lines: a budget loan of RUB 500 billion, and another RUB 500 billion in funds that remain in the region and don’t have to be returned to the federal budget so that they can be spent on infrastructure. And the proposal that has now been delegated to us is infrastructure bonds: we expect to invest about RUB 150 billion in construction over the next three years — Vitaly Mutko, Chief Executive Officer, DOM.RF.

We have looked at all industries: housing and utility services, sports, culture – what we want to do. A source of funding has been selected for each site, such as an infrastructure loan, infrastructure bonds, money in an account, and funds from national projects. We have made all the decisions for ourselves and already started sending applications for all the items on the infrastructure menu. So, we are very pleased with the opportunities that both DOM.RF and the Russian Government have provided us — Igor Artamonov, Head of the Administration of Lipetsk Region.

As far as infrastructure projects are concerned, we are considering a major project called ‘Industrial Quarters’, which involves the comprehensive development of territories in Moscow. We plan to involve total area of around 2,000 hectares in this programme. We see potential construction volume on this area of about 40 million square metres of both commercial as well as industrial and office premises. Of course, some part of it will be housing construction — Vladimir Efimov, Deputy Mayor of the City of Moscow for Economic Policy and Property and Land Relations.

ISSUES
Regions are not being active enough in drawing up infrastructure development projects

The most difficult task is design and estimate documentation. In this regard, I would like to tell the regions – and I talk about this at the headquarters too – that the first thing is that today we have sites in the unified state register of expert opinions that will be useful for reuse. And we need to look for analogues as well […] We don’t have to come up with anything brand new. It already exists. You just need to choose what has the best practices — Irek Fayzullin, Minister of Construction and Housing and Communal Services of the Russian Federation.

The key issue now is the projects that the regions should have. We still have a lot of questions in this regard. We are just starting out, but we want the regions that have projects to be more energetic in announcing them — Vitaly Mutko, Chief Executive Officer, DOM.RF.

At present, the Ural Federal District is building 6.5 million square metres of housing. In order to fulfil the targets of the national project by 2024, we need to build 7.8 million square metres [...] By 2030, we need to build 10.3 million square metres of housing. This is quite a serious leap forward, so if we don’t prepare the infrastructure, we won’t be able to take this leap forward [...] Now the most important task, considering that the main decisions have been made and the regulatory framework has been prepared, is to polish the mechanisms and work out all the details on the ground. The regions of the Russian Federation themselves should be more active in this regard because certain requirements are being imposed on the protection of each project, very serious and high-quality substantiations need to be made, and this work simply has to be in full swing now — Vladimir Yakushev, Plenipotentiary Representative of the President of Russia in the Urals Federal District.

There is no unified coordination and mortgage lending for individual housing construction

We currently have a vast legislative framework as regards infrastructure bonds, large-scale investment projects, and comprehensive regional development [...] It’s essential to align the mechanisms that legislators are providing today, and they are sometimes in a competitive situation — Veniamin Golubitsky, President, KORTROS.

There is an aspect associated with the task of breathing new life into old industrial facilities, the ones that are often located in the centre of cities and are very difficult to get to. In this regard, it’s quite difficult to think about how this situation could be changed without a development institution that could bring everyone together in one place. One example of this is the project [to develop] the Ivanovo Manufactory. We all know the city of Ivanovo and how the centre of the city is home to the most beautiful manufactory of the 18th century, but it’s not in very good condition — Nikolay Tsekhomskiy, First Deputy Chairman – Member of the Management Board, State Development Corporation "VEB.RF" .

Whereas we have solved the issues of mortgage lending in apartment building construction, this is unfortunately not the case today in individual housing construction. Mortgages do not even exceed 10% of the market for individual housing construction — Anatoly Pechatnikov, Deputy President – Chairman of the Management Board, VTB Bank.

Mortgage lending for individual housing construction is the way that Russia should develop — Ivan Fedotov, Director, Association of Innovative Regions of Russia (AIRR).

SOLUTIONS
There is an opportunity to combine all infrastructure project funding instruments

Along with the Housing and Utilities Fund and DOM.RF, we are currently setting up a project office that will have a one-stop shop where we can offer the regions the right choice for the system to be used. In particular, there are regions that have difficulties with credit resources and where budgetary provisions are low. We must help them especially so that programmes in these territories do not come to a standstill, but develop the same way as they do in the other territories — Irek Fayzullin, Minister of Construction and Housing and Communal Services of the Russian Federation.

DOM.RF is now offering another mechanism. It will be very simple: we borrow money on the market, issue our own bond – DOM.RF is a stable financial institution – and then we offer long-term money at 3–4% for either a developer or a development corporation that the region chooses today. The region should basically act as a surety, and we guarantee the entire stability of the structure […] We want the regions to be able to use the entire range of the infrastructure menu [...] We can simulate [...] it will be possible to get a budget loan, for example, for interchanges or for roads, and take our long-term money – a loan starting from 15 years at 3–4% – [and invest it] in infrastructure: internal roads, networks, and then put it all into one project — Vitaly Mutko, Chief Executive Officer, DOM.RF.