YEKATERINBURG, April 4 (RIA Novosti) – Russia's cash-strapped regions are failing to get loans and attract investors due to poorly prepared investment projects, a senior executive from national development lender Vnesheconombank (VEB) said on Thursday.
“I would like to explain what prevents the Russian regions from working with banks and receiving loans. We have come across the problem that there are few well-devised and quality investment projects. I believe this problem is typical of all regions,” VEB Deputy Management Board Chairwoman Irina Makiyeva told the first all-Russia forum of development institutions.
Many investment projects have a weak business plan, she said.
“When we collected bids from all over Russia for investment projects in single-industry towns…we accepted only 20 percent of a total of 300 applications for examination, and out of this number [20 percent] we again had to discard half, as the quality of documentation was wide open to criticism,” she said.
Makiyeva said it was important to create well-prepared sites for investors.
President Vladimir Putin urged the Russian regions late in 2012 to prepare regional investment roadmaps with clear-cut goals to attract investors and help boost the county’s flagging economy.
Russia’s regions should demonstrate their potential to investors, who must have a clear picture of regional infrastructure plans and existing state support measures, Putin said.
Russian regional governors should ensure they have the time to make contact with potential investors in person, he said.
Heavily reliant on raw material exports, primarily oil and gas, the Russian government has been attempting to diversify the economy for years, but with little apparent success so far.
