Country Overview
Russia's permit systems support the creation of new businesses through low start-up costs and efficient property registration processes. This encourages the entry of new businesses, including infrastructure ones, increasing competition as a result. Despite a solid fiscal position, overall infrastructure investment in Russia ranks as the second lowest among Upper Middle Income Countries. To increase infrastructure investment Russia could improve taxation incentives aimed at encouraging investment, strengthen creditors' protections and conduct market sounding prior to help the government determine if private financing is available. *Compared to Oxford Economics data, Russia's InfraOne Research states that Infrastructure Investment was 4.5% of GDP in 2019. Compared to IJ Global data, InfraOne Research states that private infrastructure investment was $37.5 billion in 2019 (5-year average).
See Full Overview Data
GDP per capita
11,163 USD
Population
146.7 million persons
Infrastructure quality
73.8 (0-100 best)
Infrastructure investment
2.8% of GDP
Private infrastructure investment
793.8 5-year average, USD millions
Infrastructure gap
1.5% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

38
2
55.1
Contender
52
5
54.2
Aspiring
13
2
85.4
Global Leader
51
7
64.4
Aspiring
28
9
82.4
Top performer
73
-
11.9
Emerging
38
7
37.3
Contender
42
10
31.5
Contender

Metric Overview

Strengths

Cost to start a business

The cost of starting a business in Russia is 0.9% of income per capita, well below the Upper Middle Income average of 11%, easing the entry of new firms.

Registering property

In Russia it takes 14 days to register a property, well below the 22 day Upper Middle Income Countries’ average. As infrastructure projects often involve some transfer of property rights, an efficient registration process reduces project cost and risk.

Gross government debt

Russia’s gross government debt amounts to only 16% of GDP, the second lowest among countries covered in InfraCompass 2020. The COVID-19 pandemic may impact this, but Russia’s government is currently in a strong fiscal position to fund infrastructure.

Cost to start a business

The cost of starting a business in Russia is 0.9% of income per capita, well below the Upper Middle Income average of 11%, easing the entry of new firms.

Registering property

In Russia it takes 14 days to register a property, well below the 22 day Upper Middle Income Countries’ average. As infrastructure projects often involve some transfer of property rights, an efficient registration process reduces project cost and risk.

Gross government debt

Russia’s gross government debt amounts to only 16% of GDP, the second lowest among countries covered in InfraCompass 2020. The COVID-19 pandemic may impact this, but Russia’s government is currently in a strong fiscal position to fund infrastructure.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

Upper middle income country average

Funding capacity:
Gross government debt

Opportunities to Grow

Financial depth

Russia’s score for Financial Depth is below the average for Upper Middle Income Countries. The Russian infrastructure market is characterised by few equity investors and long-term institutional investors, the absence of a secondary securities market, and the participation of Russian state pension funds only in debt financing. Improving the depth of the financial market could allow Russia to more efficiently meet the capital requirements for future infrastructure projects.

Market sounding and/or assessment

Russia currently lacks a market sounding process for infrastructure projects, although they are increasing efforts to facilitate transparent communication in the infrastructure market through the development of digital platforms, such as ROSINFRA. Adding a market sounding process could allow the government to better determine if there is sufficient interest from investors and lenders to provide commercial financing for projects.

Value of close infrastructure deals with foreign equity sponsorship

Among the Upper Middle Income Countries, Russia has a score significantly lower than the average of 32. Foreign pension funds and institutional investors are not present in the Russian infrastructure market. A low value may reflect a limited scale of infrastructure investment opportunities available for foreign investors and may increase financing costs as a result of lower levels of competition.

Financial depth

Russia’s score for Financial Depth is below the average for Upper Middle Income Countries. The Russian infrastructure market is characterised by few equity investors and long-term institutional investors, the absence of a secondary securities market, and the participation of Russian state pension funds only in debt financing. Improving the depth of the financial market could allow Russia to more efficiently meet the capital requirements for future infrastructure projects.

Market sounding and/or assessment

Russia currently lacks a market sounding process for infrastructure projects, although they are increasing efforts to facilitate transparent communication in the infrastructure market through the development of digital platforms, such as ROSINFRA. Adding a market sounding process could allow the government to better determine if there is sufficient interest from investors and lenders to provide commercial financing for projects.

Value of close infrastructure deals with foreign equity sponsorship

Among the Upper Middle Income Countries, Russia has a score significantly lower than the average of 32. Foreign pension funds and institutional investors are not present in the Russian infrastructure market. A low value may reflect a limited scale of infrastructure investment opportunities available for foreign investors and may increase financing costs as a result of lower levels of competition.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

Upper middle income country average

Financial markets:
Financial depth

Detailed Data

This section shows country data for each of the 41 metrics. The figures in brackets denote the change in score since InfraCompass 2017. 

Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Metric

Russia

Upper middle Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

43.0 (+4.9)
37.7

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

33.7 (-0.5)
45.1

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

50.0 (+3.3)
40.2

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

41.6 (+7.4)
46.1

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Russia

Upper middle Income Countries Average

43.0 (+4.9)
37.7
33.7 (-0.5)
45.1
Yes
-
50.0 (+3.3)
40.2
41.6 (+7.4)
46.1
Yes
-

Country Overview Data

Russia's permit systems support the creation of new businesses through low start-up costs and efficient property registration processes. This encourages the entry of new businesses, including infrastructure ones, increasing competition as a result. Despite a solid fiscal position, overall infrastructure investment in Russia ranks as the second lowest among Upper Middle Income Countries. To increase infrastructure investment Russia could improve taxation incentives aimed at encouraging investment, strengthen creditors' protections and conduct market sounding prior to help the government determine if private financing is available. *Compared to Oxford Economics data, Russia's InfraOne Research states that Infrastructure Investment was 4.5% of GDP in 2019. Compared to IJ Global data, InfraOne Research states that private infrastructure investment was $37.5 billion in 2019 (5-year average).
GDP per capita

11,163 USD

Population

146.7 million persons

Infrastructure quality

73.8 (0-100 best)

Infrastructure investment

2.8% of GDP

Private infrastructure investment

793.8 5-year average, USD millions

Infrastructure gap

1.5% of GDP

GDP

1,638 USD billion

GDP growth rate

1.1%

GDP per capita growth rate

-1.1%

Gini coefficient

37.7 (0-100 worst)

Gross Government Debt

17.0% of GDP

Inflation rate

4.7%

Summary credit rating

55.0 (0-100 best)

Unemployment rate

4.5%

Urbanisation ratio

74.0% of total population

Road connectivity

85.7 (0-100 best)

Quality of road infrastructure

3.5 (1-7 best)

Efficiency of train services

4.9 (1-7 best)

Efficiency of air transport services

5.0 (1-7 best)

Efficiency of seaport services

4.7 (1-7 best)

Electricity access

100.0% of population

Electricity supply quality

10.0% of output lost

Exposure to unsafe drinking water

7.9% of population

Reliability of water supply

5.3 (1-7 best)

Digital Adoption Index

0.7 (0-1 best)

Mobile-broadband subscriptions

87.3 per 100 population

Fixed-broadband Internet subscriptions

22.2 per 100 population