Territory Development

Abstract

This article examines the concept of an offset contract and its interpretations in international and Russian practice. It analyzes the instrument's compliance with the key features of public-private partnerships and concludes that offset contracts should be considered a form of quasi-public-private partnership. Furthermore, the article analyzes the key advantages that offset contracts can provide for supporting regional investment development. It also provides a breakdown of concluded offset contracts by industry and region, confirming the low demand for this mechanism among the constituent entities of the Russian Federation, with the exception of Moscow. The author also examines the factors hindering the active conclusion of offset contracts by regions. The main reason is general macroeconomic uncertainty, which manifests itself through increased long-term investment risks. The rationale for providing additional government support measures for new investment projects implemented using offset contracts is justified, which will increase the attractiveness of this instrument for private investors.