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Albert Yeganyan, a managing partner of law firm Vegas Lex, appeared as an expert on RBC TV’s CAPITAL program on August 25 to discuss infrastructure bonds. Yegor Fyodorov, head of the Bank of Moscow’s Debt Market Analysis Department, also took part in the program.

The two lawyers discussed the prospects of infrastructure bonds on the Russian debt market and issues related to loan guarantees. “It is expected that the government will be the guarantor either directly or via Vnesheconombank that has state corporation status in Russia, which entitles it to act as the government’s agent in such projects,” said Yeganyan. The experts agreed that infrastructure bonds cannot become a successful instrument in Russia until the country has developed a proper legislative framework and has improved the rules that are currently in effect. “The legislative framework regulating infrastructure bonds is expected to be in place in late 2008 or early 2009,” said Yeganyan.

The discussion also touched upon the issue of project selection. “As Russian infrastructure bonds are public-private partnership instruments, it would be reasonable to suggest that the methodology of project selection will be the same as in other public-private partnership projects, i.e., competition, selection, investment commission, government commission, award, issue of government guarantees,” said Yeganyan.