Margarita Dukhova has provided her opinion on the proposed changes to the Civil Code and its influence on the PPP sector

Associate from the PPP Practice at Maxima Legal, Margarita Dukhova has provided a positive assessment of the proposals from the Ministry of Economic Development to remove from the Civil Code provisions on the forced dissolution of companies in which net assets are less than their authorised share capital. According to the bill’s drafters, the current regulations are unfair in particular for specialised companies, created for the purpose of infrastructure projects on the basis of concession agreements or public-private partnership agreements.

Commenting on the bill for Pravo.ru, Margarita noted that the projects structured on the basis of PPP are long-term by their very nature. Agreements are typically valid for a period of 20 to 30 years, of which at least two to five years could be taken up by the investment stage. At the same time, “only at the stage of operation at a specific point in time can an investor anticipate a return on its investments and once the infrastructure is generating an income”, explained Margarita.

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