Russia’s economy will be supported by large-scale investment from the construction market because of the nation’s hosting of the 2018 FIFA World Cup, with the construction of stadiums, transport infrastructures and accommodation to come, according to a recent Timetric report: Construction in Russia – Key Trends and Opportunities to 2017.
Timetric, a provider of online data, analysis and advisory services on key financial and industry sectors, expects high levels of private investment because of the new easier way of obtaining construction permits. Foreign investment is also anticipated as a result of the nation’s accession to the World Trade Organization.
Since early 2000s Russia’s infrastructure has struggled due to underinvestment and lack of government support. Widespread corruption and excessive bureaucracy have stopped foreign companies establishing construction projects in Russia. However from 2008 to 2012 infrastructure construction projects were implemented under public-private partnership laws.
According to ratings agency Standard and Poor’s, Russia has a lack of metro lines, roads, airports and utilities in most cities. Russian local governments assess the cost of the 2018 World Cup at around U.S. $43 billion. The federal government estimates the figure to be half that value.
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