Construction Today is More Cost-Effective Than Tomorrow, According to Gazprombank's First Vice President Brusser
In the face of sky-high interest rates and turbulence caused by sanctions, the construction sector tends to make headlines for needing a boost. This industry plays a significant role in driving economic growth, influencing sectors like logistics, tech, and international trade. At the 2025 St. Petersburg International Economic Forum (SPIEF), a discussion titled "Beyond Construction: Infrastructure Financing as the Backbone of Economic Growth" took center stage, focusing on revolutionizing investment strategies in projects.
During this event, Gazprombank's First Vice President, Pavel Bruser, offered some insightful suggestions for contractors investing in projects:
When the data crunches, inflation in the construction industry consistently outpaces even the current interest rate. That's why it makes more financial sense to build now as opposed to tomorrow.
The crux of every construction project includes the initial investment phase—when funds (often obtained through borrowing) are injected, but the project isn’t yet complete and producing returns. This is the most precarious moment for any endeavor, as the developer grapples with hefty financial burdens, which can be particularly brutal during periods of instability.
Bruser expounded on the current scenario by stressing that banks should present developers the option to pay a reduced interest rate during the project's investment phase. The bank could cover part of the expenses using its own funds.
Not every bank can swing this. Working closely with NAIIC (National Association of Engineering Companies), we've managed to convince the Central Bank to ease capital consumption rules, particularly for concessions, starting from 2026. This measure will greatly aid concession projects, Bruser reported.
The bank's top executive also advocated for a shift in the traditional construction project cycle, which typically lasts 10-15 years.
Instead, create projects with a total lifespan of 50-70 years. This way, at each stage, financing organizations can conduct restructuring and adapt to investment cycles - whether the economic situation improves or deteriorates, Pavel Bruser recommended.
It's essential to clarify that this extended lifespan pertains to the financial stages of the project, not the construction timeline itself.
In any concession, all projects eventually become government property.
The expert also pointed out that today, banks are pooling resources to bolster the construction industry by forming syndicates with managing firms and investment funds. Such collaborations help lighten the load on the project, ultimately benefiting the budget.
Gazprombank and other financial institutions also focus on fostering innovation and technological advancement in the construction sector through various means. Partnerships with entities like the federal territory of Sirius and the Moscow Innovation Cluster Foundation will facilitate educational programs, technological initiatives, and research projects benefiting the construction industry. By supporting R&D, technology entrepreneurship, and promoting technological innovation, these organizations aim to reduce costs and improve productivity in construction projects, thus providing a lifeline during times of economic strain.
- Pavel Bruser, Gazprombank's First Vice President, suggested that banks could offer developers a reduced interest rate during the project's investment phase, using their own funds to cover part of the expenses in the construction industry, which consistently outpaces inflation and handsome interest rates.
- To aid concession projects, Bruser reported that Gazprombank, in collaboration with the National Association of Engineering Companies (NAIIC), had convinced the Central Bank to ease capital consumption rules, starting from 2026, thereby providing financial relief for these projects.
