Companies began to freeze investment projects in Russia three times more often

The experts reached these conclusions after analyzing around 1,700 investment projects, the information of which is available in open sources: news, tenders on e-commerce platforms, investment project databases, information from municipal administrations and with the help of from their own sources.

• The study showed that at the end of April, companies suspended investment projects totaling 782.5 billion rubles. More than half (53.5%) of commercial companies have postponed implementation until the second half of 2023, and 46.5% plan to return to projects in the second or third quarter of 2024.
• Most of the investment projects in Russia are frozen at the stages of preliminary studies (45.1% of all projects) and design (43.1% of all projects).
• Most frequently, since the beginning of this year, investment projects have been put on hold by owners of manufacturing companies (38.3% of all facilities), farms (30.9%), commercial real estate owners (11.1 %) and energy (6.2%).
• Among the regions, investment projects were frozen the most in the Central (25.7% of all objects), Volga (15.7%), Siberian (15.7%), Northwestern (21.4%) Federal Districts and the Far East (10%).

“Risk assessment and work on cost reduction with the help of e-commerce platforms came to the fore. There are many reasons for this. It is about the lack of own funds, and difficulties with the supply of machinery, equipment and components, without which it is impossible to start the project. Businesses also face difficulties in obtaining loans. Either they are not enough or the proposed conditions are simply not profitable for business,” said Ildar Mukhamediev, CEO of TenderPro.