SOME EXAMPLES

a) Project Finance and Russian Federation

[Purpose]The purpose of the dissertation is to explore the best practices and ways for incorporating Project Finance into the economic system of Russian Federation. [Motivation] Project Finance – form of investment for capital intensive megaprojects – is deemed an effective instrument and optimal mechanism of financing large-scale projects. Despite several government projects (Sakhalin II, Sheremetyevo III) and growing quantity of capital intensive megaprojects in Russia, Project Finance (PF) is not broadly spread in Russian Federation. [Research Focus] This diploma paper work focuses on the mechanism of PF and Public-Private Partnership (PPP) and benefits for the country and project companies. [Research Methods] This diploma paper work met these twin research aims through an extensive study of relevant literature and the implementation of practical research. The latter was carried out through a comprehensive study of several megaprojects, such as Sakhalin II, Sheremetyevo III, Blue Sky project. [Findings] This research produced a number of key findings: since the first application of project finance in the late 1970-s it has undergone a serious transformation; PF is successfully used all over the world; the technology of implementing of PF is sophisticated, what protects megaprojects from numerous risks; in the matter of necessary characteristics for participants of project financing schemes the emphasis is on the so called Equator Principles, which justify all the necessary criteria for projects taking into account the idea of sustainable development. [Conclusions] The main conclusions drawn from this research were that PF is underestimated in Russian Federation, although its implementation brings certain benefits, such as optimization of time and financing expenses on the project; effective risk allocation in between high contracting parties and stimulating interest on the part of international investors. [Recommendation] This research counsels to create on the basis of Equator Principles a solid institutional and judicial ground for development of PPP and PF in Russian Federation.

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B Dissertation abstract.

Islamic Financial Institutions in Global Economy: Prospects and Adaptation Mechanisms.

The purpose of the dissertation is to explore the mechanisms for incorporating Islamic financial institutions into the conventional economic system. In 2008 many western banks faced with the crisis sustained massive financial losses. However, despite the global financial meltdown the Islamic financial sector has continued growing by 10-15% yearly. This phenomenon has aroused widespread interest in the Islamic financial system as a means of combating recession. Nevertheless, the adoption of the system worldwide has been hampered by the absence of systemic approach. The dissertation seeks to reveal the basis of Islamic financial model and to identify the difficulties integrating Islamic financial institutions into the prevailing economic system. The dissertation met these research aims through an extensive study of relevant literature and an in-depth analysis of statistical data. This research produced some significant findings: the Islamic finance is based on divine guidance, prohibition of interest, profit and loss sharing and Sharia-based investment; the emergence of Islamic financial institutions in the West was mostly motivated by economic factors in contrast to Muslim countries where it was determined by religion; accounting and regulatory standards in the aforementioned institutions are dissimilar. The main conclusion drawn from this research was that the inadequacy of holistic approach to incorporating Islamic financial institutions into the conventional economic system due to heterogeneity in Islamic accounting and regulatory standards prevents stabilizing global economy. This research argues for a systemic approach to adopting Islamic financial institutions universally which stipulates profound changes to traditional financial legislation, accounting principles and mechanisms for supervision.

Date: 2014-12-21; view: 1560