Financial support of the construction sector activities: trends, problems and opportunities

The construction industry is the basis for the development of the economic systems of the regions and the state. The article presents an analysis of the current state of the construction industry, identifies the main trends in this segment of the economy. Particular attention is focused on the issues of financial support for the activities of the subjects of the construction industry. In modern conditions,  the basic tool for attracting financial resources for the construction industry is project financing based on escrow accounts, which are characterized by certain advantages and risks for the participants in the interaction, the leveling of which is possible by improving the mechanism for using funds. The authors also considered the possibility of using additional sources of financial support for the construction industry through the use of project, corporate and infrastructure bonds, crowdlending, funds from large domestic funds, and reviving the practice of housing cooperatives. The development of approaches to financial  support will expand the capabilities of the construction industry, intensify their activities and ensure  a multiplier effect in the economy.

1. Yescomb E.R. Principles of project financing Moscow: Alpina-Publisher; 2015.408 p. (In Russ.)

2. Nikonova I. A. Development of project financing in Russia. Sovremennye tekhnologii upravleniya = Modern management technologies. 2012; 7(19): 8-13. (In Russ.)

3. Vakhrushev D. S., Gaibov T. S. Project finance as a perspective tool for implementation of infrastructure projects in the conditions of limited access to foreign funding. Internet-zhurnal Naukovedenie = Online journal "Science Studies". 2016; 8(4(35)): 26. (In Russ.)

4. Kabushkin S. N., Nikonorova M. E. Peculiarities of Project Financing as a Method of Financial and Organizational Support for the Investment Project Implementation. Vestnik Belorusskogo gosudarstvennogo ekonomicheskogo universiteta = Bulletin of the Belarusian State Economic University. 2022; (6):52-60. (In Russ.)

5. Graboviy P. G., Manukhina L. A., Budanov I. V. Features of project financing of investment and construction projects of housing real estate: problems, risks, forecast. Nedvizhimost': ekonomika, upravlenie = Real Estate: Economics, Management. 2019; (4): 6-12. (In Russ.)

6. Avramenko I. E. Features of the development of project financing of the construction industry in Russia. Akademicheskaya publitsistika = Academic journalism. 2022; (7-1): 66-72. (In Russ.)

7. Masaev V. Yu., Kotova T. V. Project financing risks of investment and construction programs. Altaiskii vestnik Finansovogo universiteta = Altai Bulletin of the Financial University. 2018; (3): 92-97. (In Russ.)

8. Tuleberdiev A. T. Foreign experience in financing housing construction projects. Vestnik Kyrgyzskogo ekonomicheskogo universiteta im. M.R. Ryskulbekova = Bulletin of the Kyrgyz Economic University. M.R. Ryskulbekov. 2020; 2(49): 91-92. (In Russ.)

9. Zueva K. A. Development of the institution of project financing in the field of housing construction in the Russian Federation: trends and potential risks. Aktual'nye problemy prava = Actual problems of law. 2019; (6): 50-56. (In Russ.)

10. Kovalevskaya N. Yu. Management of investment and construction projects in terms of project financing. Baikal Research Journal. 2021; Vol. 12 (2). Available from: https://cyberleninka.ru/article/n/upravlenie-investitsionno-stroitelnymi-proektami-v-usloviyah-proektnogo-finansirovaniya DOI 10.17150/2411-6262.2021.12(2).10. (In Russ.)

11. Sokolova A. A. Sources of financing for construction companies in the context of innovations in legislation that protect the interests of shareholders Skif. 2020;7(47). Available from: https://cyberleninka.ru/article/n/istochniki-finansirovaniya-deyatelnosti-stroitelnyh-kompaniy-v-usloviyah-novovvedeniy-v-zakonodatelstve-zaschischayuschih-interesy (In Russ.)

12. Bezrukikh O. A., Abayeva E. M. Analysis and optimization of the structure of sources of financing of the investment and construction sector company. Molodezhnyi vestnik IrGTU = Youth Bulletin of IrSTU. 2021; 11(2): 118-124. (In Russ.)

13. Afanasyev A. S., Kleimenova L. V. Corporate bonds of developers as an additional source of funding the context of project financing of shared-equity housing construction. Problemy sotsial'no-ekonomicheskogo razvitiya Sibiri = Problems of socio-economic development of Siberia. 2021; 2(44): 9-15. DOI: 10.18324/2224-1833-2021-2-9-15. (In Russ.)

14. Sadykova A. I., Kurmanova L. R. Implementation of the mechanism of project financing of housing construction in modern conditions. Ekonomika i predprinimatel'stvo = Economics and entrepreneurship. 2019; 10(111): 1029-1032. (In Russ.)

15. Bakieva M. Yu. Prospective directions of financing innovative activities of construction organizations. Innovatsionnaya deyatel'nost' = Innovative activity. 2021; 2(57): 92-105. (In Russ.)