Global Crisis, Red Tape Could Slow Down Implementation of Russia’s Recovery Plan, Experts Claims

The implementation of large-scale infrastructure projects under the national economic recovery plan of Russia can be hindered by the negative development of the world coronavirus situation and the excessive bureaucracy in the construction industry, according to experts polled by the Future of Russia – a National Projects portal operated by TASS.

“To date, no budget spending cuts have been envisaged, and additional funds are planned to be raised from the National Wealth Fund and new borrowings. But even the most competent macroeconomists will not say what will happen in 3-6 months,” head of the Higher School of Economics’ Transport Institute Mikhail Blinkin says.

He added that a lot will depend on the further development of the situation with the spread of coronavirus in the world and energy demand, TASS writes.

According to the deputy head of the Department of Economics and Transport Development of the Analytical Center under the Government of the Russian Federation Sergey Diaghilev, in addition to financing, it will be necessary to study security aspects.

“For example, not all regions have free capacities and the necessary amount of labor resources. They will need a clear plan of demand for construction equipment, safe and effective measures to attract labor resources, etc.,” he said.

At the same time, Blinkin believes that bureaucracy also remains an obstacle to many good projects. For example, he referred to the fact that in Russia even small road works require conducting a full-fledged competition procedure. In world practice, local construction projects are usually regulated by decisions of the local administration.

Scroll to Top