Federal Law No. 224-FZ on Public-Private Partnership, Municipal-Private Partnership in the Russian Federation and Amendments to Certain Legislative Acts of the Russian Federation of July 13, 2015
The Law, which entered into force on January 1, 2016, is the result of many years of work by legislators and the business community in which numerous successive federal draft laws in the area of public-private partnership were actively discussed. The need for more in-depth legislative regulation of PPP projects to set forth the various forms of implementing PPP projects made the Law one of the most awaited new developments of 2015.
The very fact that the Law, which legalized non-concession forms of PPPs in Russia, along with a number of the Law’s provisions, such as: definition of the PPP concept; a procedure for private project initiatives; definition of the status of financing parties and the ability to conclude direct agreements with them; the ability to pursue joint project implementation with the participation of multiple governmental units; the ability to pledge the subject matter of the agreement and substitute the private partner; and many others is worthy of high praise. The Law also defines who can be a private or public partner, the forms in which PPPs can be implemented, and provides an exhaustive list of PPP facilities. An important provision treats a PPP agreement as a civil-law contract and sets forth the mandatory elements of a PPP agreement. However, upon greater familiarization with the Law, many experts have come to the conclusion that it fails to address fully the aforementioned concerns—ignoring some completely—while others have potentially been exposed to additional problems.4
The Law envisions the adoption of many legal acts dealing with various procedures in the course of executing and performing a PPP agreement. A lot of work was done on drafting those acts in the fourth quarter of 2015 and finally they were adopted.5