The Russian government is reshaping how risk is shared between the state and business to keep state investments from swelling beyond sustainable levels. This year, private funds and bank loans are expected to lead capital investment, with public funds playing a smaller role. The shift, reported by Kommersant and based on statements from multiple government departments, marks a deliberate move to diversify funding streams while maintaining macroeconomic stability.
The Ministry of Economic Development stated that after last year’s budget-backed investments, private capital and bank financing should become the primary sources of capital investment in 2023. This transition aims to improve credit conditions, encourage corporate finance discipline, and mobilize private resources to support growth. The ministry underscored that the private sector would play a more central role in financing new projects across sectors while the state scales back direct investment exposure.
In tandem with this shift, the government plans to tighten the use of free budget loans by adjusting the terms for advance payments on government contracts in 2023. The goal is to free up more resources for enterprises by refining procurement cash flow while preserving fiscal discipline. By recalibrating how quickly contractors can access funds, authorities aim to smooth liquidity for firms and support project execution within the planned budget envelope.
Officials noted that the 2023 extension of favorable advance payment rules will allow suppliers to receive as much as 50 percent of the contract value from customers when treasury support is available. For contracts outside treasury oversight, the cap will be 30 percent. This framework is designed to accelerate cash flow for smaller firms and stimulate investment activity while keeping government exposure within controlled limits. The policy signals a pragmatic balance between prompt supplier payouts and prudent budget management.
According to the press service of KOBI A.Ş., the operator of the National Guarantee System (NGS), small and medium-sized enterprises accessed more than 292 billion rubles in loans last year, backed by guarantees from regional guarantee organizations. This demonstrates the effectiveness of guarantees in expanding credit access for smaller players and sustaining investment in the real economy. The NGS framework continues to support a broader base of enterprises, helping them finance working capital, modernization, and expansion plans. [Attribution: National Guarantee System communications]