The participants in an investment project are typically: (1) a bank (creditor) that provides the majority of the financing (usually 70-80 percent); (2) an investor, which is the entity that initiates the project and provides co-financing (usually 20-30 percent); and (3) the company carrying out the project.
We provide tax advisory services, and legal support at every stage of project financing – from the preparation and negotiation of transaction documents during the project’s initial stages, all throughout the transaction itself, and finally up to the audit stage for companies involved in the project. These services allow the project to be carried out in a way that is both more effective and less costly than would be possible otherwise.
At KPMG, our team includes members who have specialized in issues related to financial instruments, and they can prepare recommendations on the steps that should be taken to conform with Russian Accounting Standards (RAS) and International Financial Reporting Standards (IFRS) when hedging the project. KPMG can also analyze the effect of relevant tax regimes on hedging operations and derivatives.