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Financial Journal Vol.17 No.3 2025

CONTENTS

M.R. Pinskaya, Yu.A. Steshenko
Efficiency of Application of Tax on Additional Income from Hydrocarbon Raw Materials
, p. 8-24
Abstract
Despite an increase in the share of non-oil and gas revenues in the federal budget of the Russian Federation, the Russian economy is still largely dependent on oil and gas revenues. As a result of the tax reform in the oil and gas sector, the role of revenues from the tax on additional income from hydrocarbons (hereinafter referred to as the TAI regime) has significantly increased, as well asthe quantity of mineral resources extracted in subsoil areas where TAI is applied. The TAI regime is preferential, since it implies the availability of tax incentives and a significant amount of tax expenses arising from their application. However, ineffective tax benefits that result in tax expenditures may significantly limit the growth and development of the oil sector in Russia. It should also be noted that the negative impact on the environment and carbon footprint is increasing due to the growth of production volumes. That is why the topic of this study is relevant. The purpose of the study is to identify the key features of taxation of subsoil areas where the TAI regime is applied and to assess the effectiveness of the comprehensive tax incentive. The hypothesis of the study is that the amount of tax expenditures resulting from the application of the TAI regime is lower than the volume of investments and the amount of tax expenditures in subsoil areas where the TAI regime is applied. As a methodological basis, a system analysis of the provisions of legislation in the field of taxation of natural resources was used. The effectiveness of the TAI regime was assessed using the methods of statistical data analysis. The study creates a methodological tool for assessing the effectiveness of investment-oriented tax incentives, which includes the TAI regime, thereby contributing to the growth of knowledge in the area of taxation theory. From an applied point of view, the results are useful for the development and justification of decisions on improving and (or) expanding the TAI regime in Russia.
Keywords: tax on additional income from hydrocarbon extraction, tax on mineral extraction, investment, comprehensive benefit, tax expenditures, oil and gas revenues, tax incentives, carbon footprint
JEL: H21, H22, H23
For citation: Pinskaya M.R., Steshenko Yu.A. (2025). Efficiency of Application of Tax on Additional Income from Hydrocarbon Production. Financial Journal, 17 (3), 8-24 (in Russ.). https://doi.org/10.31107/2075-1990-2025-3-8-24.
© Pinskaya M.R., Steshenko Yu.A., 2025

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I.Yu. Arlashkin
Improving the Assessment of Regional Tax Capacity by Selected Types of Taxes,
p. 25-38
Abstract
Sub-federal authorities have the power to administer transportation tax, gambling tax, local taxes and taxes on total income, including setting rates, providing benefits or determining the tax base, which makes these taxes an important instrument of sub-national revenue policy. Together with the state duty, they make up about 10% of sub-federal tax revenues and are generally referred to as other types of taxes when assessing tax capacity in calculating fiscal equalization grants to regions. Given the increasing role of other types of taxes, the task of correct assessment of tax potential for them is becoming more and more urgent. The article examines the relationship between a region’s share in actual revenues from other types of taxes, a region’s share in the total labor force and a region’s shares in actual revenues from individual taxes using a sample of 85 regions for 2019–2023. The panel regression model employs individual fixed effects, which allows us to account for the impact of region-specific factors, including the level of regional tax competition, such as reduced tax rates and additional tax benefits. The assessment results show that the tax capacity for other types of taxes is proportional to the region’s share in the total labor force and the region’s share in the tax potential for personal income tax. These results allow us to refine the formula for assessing tax capacity for other types of taxes. Since the Russian tax system is currently undergoing significant changes, including those related to profit tax and tax levied in connection with the application of the simplified tax system, the obtained estimates can be subsequently refined using new data.
Keywords:
tax capacity, fiscal capacity, equalization grants, fiscal equalization, regional budgets
JEL:
H73, H77
Funding:
The article was written on the basis of the RANEPA state assignment research programme.
For citation:
Arlashkin I.Yu. (2025). Improving the Assessment of Regional Tax Capacity by Selected Types of Taxes. Financial Journal, 17 (3), 25–38 (in Russ.). https://doi.org/10.31107/2075-1990-2025-3-25-38.
© Arlashkin I.Yu., 2025

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A.V. Tikhonova, M.V. Pyanova
Tax Mechanism to Counteract Business Fragmentation in Agriculture, 
p. 39-53
Abstract
The subject of this study is tax risks of agricultural producers associated with business fragmentation. The purpose of the study is to develop proposals for improving taxation and tax control in agriculture, contributing to the reduction of business fragmentation risks. The specific features of taxation in agriculture is conditioned by the mandatory compliance with the share of qualifying revenue from the sale of agricultural products and products of their primary and subsequent processing. This leads to the risk of business fragmentation for dishonest taxpayers. The authors analyze general approaches to identifying business fragmentation schemes and identify the criteria for artificial business fragmentation on the basis of arbitration practice materials and clarifications of the Federal Tax Service. А typical splitting scheme in agriculture is presented and disclosed. It is derived from tax incentives and preferences in agriculture, systematized in tabular form. The existing concept of risk-based approach of tax authorities does not contain special industry criteria. The study proposes a three-element mechanism for preventing splitting risks in agriculture and develops criteria for identifying illegal tax optimization schemes in the industry. The proposed mechanism includes simplification of the procedure for the application of tax incentives; establishment of indicators of “voluntary” use of benefits in agriculture; strengthening of tax control over transactions involving business splitting. The proposals contribute to a more effective implementation of the following classical and modern principles of taxation: fairness, equal competition, plurality of taxation in the sectoral context. The scientific novelty of the research lies in the comprehensive development of a new methodological approach to the formation of a mechanism for preventing the risks of business fragmentation in agriculture, taking into account the current capabilities of tax authorities and sectoral features of the economy. The practical significance of the study lies in the possibility of using the authors’ proposals by the Ministry of Agriculture and the Federal Tax Service of Russia when elaborating measures for the development of agriculture and sectoral tax control.
Keywords: tax benefits, zero rate, agricultural stimulation, qualifying revenue, Unified Agricultural Tax
JEL: H26, E62
Funding: The article was prepared based on the results of research carried out at the expense of budgetary funds under the state assignment of the Financial University.
For citation: Tikhonova A.V., Pyanova M.V. (2025). Tax Mechanism to Counteract Business Fragmentation in Agriculture. Financial Journal, 17 (3), 39–53 (in Russ.). https://doi.org/10.31107/2075-1990-2025-3-39-53.
© Tikhonova A.V., Pyanova M.V., 2025

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A.I. Pogorletskiy
Tax Evasion in the Modern World: Institutional Aspects, 
p. 54-71
Abstract
The purpose of the article is to systematize the institutional characteristics of tax evasion in the system of international economic relations. The role of institutional structures in preventing individuals and legal entities from failing to fulfill their tax obligations is characterized. The object of the research is the institutional environment that constitutes the mechanisms of tax evasion at the national and global levels. The research methodology includes graphical and comparative methods, as well as system and functional approaches to the characterization of institutions and socio-economic phenomena in the context of tax evasion. Historical and logical analysis of institutional aspects of this phenomenon in the global economic environment is carried out. The information base consists of fundamental works on the identification of the causes and consequences of tax evasion, published by leading theorists of financial and tax science, as well as authoritative classic and modern works in the fields of social sciences. In order to assess the scale and impact of tax evasion on the modern system of global economic relations, reports and studies of international organizations (OECD, UN, IMF, etc.) and a number of research centers were used. The hypothesis of the study was that institutional factors are significant both for explaining the causes of tax evasion and for choosing appropriate mechanisms to counteract this phenomenon. The research resulted in a typology of institutional preconditions and consequences of tax evasion, previously absent in existing publications and first proposed by the author, designed to help regulators to have more meaningful impact on this process in the contemporary world economy. The main findings suggest that institutional factors significantly affect tax evasion. Formal rules of taxation established by the state, as well as tacit moral and ethical norms of behavior based on culture and religion, determine the behavior of individuals and business entities, the influence on which by interstate institutional structures of tax regulation seems necessary.
Keywords: global tax regulation, institutes of tax behavior, institutes of tax regulation, institutes of taxation, offshore activities, tax evasion, tax optimization
JEL: B52, F55, H26
Funding: The article is based on the results of the research carried out at the expense of budgetary funds within the framework of the state assignment of the Financial University under the Government of the Russian Federation.
For citation: Pogorletskiy A.I. (2025). Tax Evasion in the Modern World: Institutional Aspects. Financial Journal, 17 (3), 54–71 (in Russ.).
https://doi.org/10.31107/2075-1990-2025-3-54-71.
© Pogorletskiy A.I., 2025

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N.E. Barbashova, O.V. Suchkova
Application of Financial Management Tools to Ensure Budget Balance and Debt Sustainability in Russian Regions, 
p. 72-89
Abstract
One of the priority task of the budget policy of the Russian Federation is to ensure long-term balance and debt sustainability at all levels of the budget system. To solve this task, the subjects of the Russian Federation implement programs and sets of measures of improving the quality of financial management. The purpose of this article is to identify the tools of regional finance management, the use of which is most effective for ensuring medium- and long-term balance and debt sustainability of the budgets of Russian regions. The article analyzes theoretical approaches to the use of regional financial management tools. The inventory of programs and sets of measures aimed at improving the efficiency and quality of financial management used by the subjects of the Russian Federation in the period from 2000 to the present is carried out. By means of econometric analysis, the authors identify the directions of regional financial management programs, the implementation of which has a positive impact on the balance and debt sustainability of regional budgets. These areas include limiting the regional budget deficit, limiting the amounts of regional and municipal debt, setting a debt repayment schedule, stimulating income growth and reducing inefficient expenditures. A list of the most effective measures to limit the deficit and debt was compiled, based on the analysis of the practice of the subjects of the Russian Federation which demonstrated a significant improvement in the parameters of the budget balance and public debt in 2014–2023.
Keywords: regional financial management tools, budget balance, debt sustainability
JEL: H61, H62, H63
Funding: The article was prepared within the framework of the RANEPA state assignment research program.
For citation: Barbashova N.E., Suchkova O.V. (2025). Application of Financial Management Tools to Ensure Budget Balance and Debt Sustainability in Russian Regions. Financial Journal, 17 (3), 72–89 (in Russ.). https://doi.org/10.31107/2075-1990-2025-3-72-89.
© Barbashova N.E., Suchkova O.V., 2025

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A.I. Lukashov
Theoretical and Applied Aspects of Treasury Financial Control in the Context of Improving Financial Discipline, 
p. 90-107
Abstract
The article considers the key aspects of introduction and prospects of development of certain types of treasury services, treasury support and budget (treasury) monitoring. These mechanisms, based on the current form of control, allow to minimize various violations, which helps to increase the financial discipline of participants and non-participants of the budget process. A new term — "treasury financial control" — is introduced into scientific discourse. The methodology for determining the effectiveness and efficiency of treasury services and treasury support is proposed, the use of which will contribute, on the one hand, to the expansion of the theoretical basis for the study of the treasury system, on the other hand, to obtaining an objective assessment of the application of these mechanisms.
Keywords: Treasury of Russia, treasury financial control, treasury services, treasury support, budget monitoring
JEL: Е62, E63, Н61, Н72, G28, P35
For citation: Lukashov A.I. (2025). Theoretical and Applied Aspects of Treasury Financial Control in the Context of Improving Financial Discipline. Financial Journal, 17 (3), X90–107 (in Russ.). https://doi.org/10.31107/2075-1990-2025-3-90-107.
© Lukashov A.I., 2025

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E.P. Dobronravova
The Impact of Monetary Policy on Loan and Deposit Rates in the Context of Limited Capital Mobility in Russia, 
p. 108-125
Abstract
According to the macroeconomic theory, capital controls should improve the transmission of interest rates from the monetary policy rate to market-based short- and long-term rates, as the latter are less affected by global financial conditions. We test this hypothesis using the case of the Russian economy, which faces massive domestic and external restrictions on capital flows in 2022–2024. During this period, the pass-through of interest rates could be reduced: for long-term deposits — by the high level of uncertainty in the Russian economy, for credit rates — by broad preferential lending programs: mortgages, SME lending, agricultural lending, etc. The study was conducted using the error correction model, which is commonly used in modeling the pass-through of interest rates in the credit and deposit markets. Such a model allows us to estimate the short- and long-run effects of a change in the monetary policy rate, as well as the speed of adjustment to a new long-run equilibrium. Proxy variables for capital restrictions and preferential lending were included in the model as a change in the slope to the monetary policy rate. The results of the analysis show that both short- and long-run pass-throughs in the retail deposit market have intensified since March 2022. Moreover, when we add a control variable reflecting the extent of preferential lending, we are able to confirm our hypothesis for long-term interest rates on individual credits and short-term interest rates on credits to non-financial organizations. The expansion of preferential lending in most model specifications had a negative impact on the effectiveness of passthrough lending.
Keywords: monetary policy, capital controls, interest rate pass through, deposit rates, lending rates, preferential lending, econometric analysis
JEL: C22, E43, E52, E58
Funding: The article was prepared within the framework of the RANEPA state assignment research program.
For citation: Dobronravova E.P. (2025). The Impact of Monetary Policy on Loan and Deposit Rates in the Context of Limited Capital Mobility in Russia. Financial Journal, 17 (3), 108–125 (in Russ.). https://doi.org/10.31107/2075-1990-2025-3-108-125.
© Dobronravova E.P., 2025

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E.M. Pastukhov, S.V. Grishunin
Assessing the Impact of the Digital Ruble on Commercial Bank Deposits in Russia, 
p. 126-140
Abstract
The purpose of this article is to present a model for assessing the impact of the implementation of the digital ruble project on commercial banks’ deposits in the Russian financial market. The relevance of this research is due to the rapid growth of market capitalization of central banks’ digital currencies in both international and Russian financial markets, as more and more countries are preparing to launch their own national digital currencies. However, there is a lack of information in both academic and practical literature regarding the potential impact of central bank digital currencies, including the digital ruble, on the stability of commercial banks, particularly concerning deposits. We propose a model to estimate the impact of the digital ruble on the size of deposits of commercial banks in Russia. The data used for the study included official statistics and analytics of the Bank of Russia and commercial banks. Based on the results of the analysis, we conclude that the effects of the digital ruble implementation are heterogeneous and do not differ much between categories of banks in terms of capital and investments in government securities, but are significantly differentiated depending on the size of assets and level of overdue debt. Furthermore, we suggest that the effect of the digital ruble will diminish over time. Future research could focus on quantifying the wide range of risks associated with the introduction of digital financial assets, as well as modeling the supply and demand for these assets, including potential practical adaptations by banks to changes in market conditions.
Keywords: CBDC, digital ruble, digital assets, digital financial assets, digital finance
JEL: G21
Funding: The research was supported by RSF (project No. 23-18-00756).
For citation: Pastukhov E.M., Grishunin S.V. (2025). Assessing the Impact of the Digital Ruble on Commercial Bank Deposits in Russia. Financial Journal, 17 (3), 126–140 (in Russ.). https://doi.org/10.31107/2075-1990-2025-3-126-140.
© Pastukhov E.M., Grishunin S.V., 2025

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Financial Journal Vol.17 No.2 2025

CONTENTS

V.V. Vagin
Preface to the Еhematic Issue
, p. 9-11

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D.A. Shatohin, E.A. Titov, V.A. Paksivatkina
Models of Digitalization of Initiative (Participatory) Budgeting
, p. 12-24
Abstract
This article examines foreign and Russian models of digitalization of citizens’ participation in the budgeting process. It identifies the existing approaches, organizational structures and key challenges associated with the implementation of digital technologies in initiative budgeting. The study highlights the use of various digital solutions which is influenced by the diversity of models and the level of maturity of initiative (participatory) budgeting practices. The authors substantiate the relevance of this topic and present a series of recommendations aimed at promoting the digital transformation of the analyzed mechanism.
Keywords: initiative budgeting, participatory budgeting, digital participation, digitalization
JEL: H72, H76, O33
For citation: Shatohin D.A., Titov E.A., Paksivatkina V.A. (2025). Models of Digitalization of Initiative (Participatory) Budgeting. Financial Journal, 17 (2), 12–24 (in Russ.). https://doi.org/10.31107/2075-1990-2025-2-12-24.
© Shatohin D.A., Titov E.A., Paksivatkina V.A., 2025

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B.V. Kupriyanov, E.M. Karpova, M.A. Shevelev
Potential of Participatory School Budgeting Practices in Improving Financial Literacy of Students
, p. 25-38
Abstract
Over the last five years, initiative school budgeting has become a noticeable part of the Russian educational landscape. However, the educational opportunities of this practice are not fully utilized. Since 2021, the staff of the NIFI Initiative Budgeting Center of the Russian Ministry of Finance has developed and is actively implementing an original model of initiative school budgeting focused on the integration of the practice of initiative budgeting into the educational process and targeted solution of educational tasks. The next stage of this work is to explore the possibilities of initiative budgeting in the context of improving financial literacy of students. The assumption that initiative budgeting at school can improve financial literacy in the aspects most relevant to adolescence is substantiated in this article based on the analysis of existing normative documents, domestic and foreign studies, as well as domestic experience. To clarify scientific ideas about financial literacy as an educational result (social attitude, readiness for a certain type of behavior), a significant body of modern research on financial behavior and financial literacy was analyzed. The authors propose a model of the potential of initiative school budgeting in improving students’ financial literacy, including value, emotional, cognitive, operational and behavioral components. The achievability of potential components is justified by a set of situations arising in the implementation of initiative budgeting in general education organizations. The proposed model allows to develop an empirical research program and select diagnostic procedures. The presented material can be helpful for teachers who use initiative school budgeting to improve students’ financial literacy.
Keywords: improving financial literacy of schoolchildren, budget literacy, participatory school budgeting, educational opportunities and effects of participatory school budgeting
JEL: A29, G53, H41, H61, R53
For citation: Kupriyanov B.V., Karpova E.M., Shevelev M.A. (2025). Potential of Participatory School Budgeting Practices in Improving Financial Literacy of Students. Financial Journal, 17 (2), 25–38 (in Russ.). https://doi.org/10.31107/2075-1990-2025-2-25-38.
© Kupriyanov B.V., Karpova E.M., Shevelev M.A., 2025

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N.G. Lukyanova, M.Yu. Slavgorodskaya, S.K. Nesgovorov
School Initiative Budgeting in St. Petersburg: Achievements and Growth Points
, p. 39-55
Abstract
In recent years, school initiative budgeting in St. Petersburg has established itself as one of the best regional practices with significant potential for replication not only at the regional but also at the municipal level. The expansion of initiative budgeting to adolescents in St. Petersburg was based on the successful experience of implementing this practice for adult participants under the “Your Budget” project. The article includes an overview of methodological features of school initiative budgeting in St. Petersburg and an analysis of the effects achieved asa a result of its application and opportunities for further improvement. The study analyzes the results of the survey of project participants in 2024. It summarizes the most significant challenges and risks that arose in the course of the project implementation, and draws conclusions about promising directions for further development of the practice.
Keywords: initiative budgeting, school initiative budgeting, “Your Budget” project, “Your Budget in Schools” project, student project activities, “Children’s Foresight” technology
JEL: H72, H75, O35, I28
For citation: Lukyanova N.G., Slavgorodskaya M.Yu., Nesgovorov S.K. (2025). School Initiative Budgeting in St. Petersburg: Achievements and Growth Points. Financial Journal, 17 (2), 39–55 (in Russ.). https://doi.org/10.31107/2075-1990-2025-2-39-55.
© Lukyanova N.G., Slavgorodskaya M.Yu., Nesgovorov S.K., 2025

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V.V. Vagin, I.V. Petrova, M.V. Kurakolov
IInitiative Budgeting in Central Asia and Transcaucasia: Prerequisites and Trajectories
, p. 56-71
Abstract
The article explores the experience of introducing initiative budgeting in a number of Central Asian and Transcaucasian countries. It analyzes citizens’ involvement in the process of budgetary decision-making and defines the regulatory, financial, and organizational characteristics of the emerging management structure for this financial innovation. Effective participation of citizens contributes to the formation of more balanced and equitable budgets that reflect the actual needs of society. The development of initiative budgeting in the Republic of Uzbekistan is characterized as dynamic, with a special emphasis on modernization and digitalization of civic engagement processes, allowing a significant part of the population to actively participate in determining the priorities of state budget expenditures. In the Kyrgyz Republic, this approach has proven highly effective at the level of local authorities, where citizens actively influence the allocation of limited resources, thereby improving the quality of life in their communities. The financial authorities of the Republic of Armenia consider initiative budgeting as a means of enhancing public confidence in the government and the efficiency of budgetary resource allocation. The Republic of Kazakhstan, in turn, focuses on the adoption of advanced technologies to increase transparency and accessibility of budgetary data for a wide audience. In most Central Asian and Transcaucasian countries, the key role in the development of initiative budgeting is played by financial authorities at both national and local levels. This article will be of interest to researchers specializing in budgetary and financial trends and civic engagement in these regions.
Keywords: initiative budgeting, participatory budgeting, open budget, citizens’ involvement, people’s participation budget
JEL: H72, H76, H79, G28, F55, R58
For citation: Vagin V.V., Petrova I.V., Kurakolov M.V. (2025). Initiative Budgeting in Central Asia and Transcaucasia: Prerequisites and Trajectories. Financial Journal, 17 (2), 56–71 (in Russ.). https://doi.org/10.31107/2075-1990-2025-2-56-71.
© Vagin V.V., Petrova I.V., Kurakolov M.V., 2025

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Ming Zhuang
Review of Participatory Budgeting Practices in China
, p. 72-81
Abstract
This paper examines the development, implementation and challenges of participatory budgeting (PB) in various cities in China, including Beijing, Jiaozuo, Shenzhen and others. It explores the diverse origins, sustainability, depth, and breadth of citizen engagement in PB initiatives, as well as institutional and political factors influencing their effectiveness. The study highlights key challenges such as transparency and institutionalization of PB and its integration into existing governance structures. It also discusses the role of digital technologies in enhancing participatory processes, improving fiscal transparency and broadening citizen involvement. The paper concludes with a discussion on the future of PB in China, emphasizing the need for policy reforms, digital innovations and international comparative research to ensure its long-term viability and impact on public governance.
Keywords: participatory budgeting in China, public finance, citizen engagement, digital governance, public participation
JEL: H61, H83, P35
For citation: Ming Zhuang (2025). Review of Participatory Budgeting Practices in China. Financial Journal, 17 (2), 72–81.
https://doi.org/10.31107/2075-1990-2025-2-72-81.
© Ming Zhuang, 2025

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O.Yu. Dmitrieva, E.N. Kadyshev, P.G. Gorbynova, A.O. Patyanova
Regional Practice of Coordination of Activities to Increase Financial Literacy of the Population
, p. 82-99
Abstract
The level of financial literacy of the population plays a crucial role in the sustainable socio-economic development of the country. Russian regions are actively engaged in the process of enhancing financial literacy of citizens as part of the implementation of the Strategy for Improving Financial Literacy and Developing Financial Culture until 2030. However, each region adopts its own approach to the organization of the financial education system aimed at transferring financial knowledge and skills to all segments of society. At the regional level, coordination of stakeholder interaction in the field of financial literacy is one of the key factors in building an effective financial education system. This highlights the importance of conducting a study on the existing regional practices of enhancing financial literacy. The article presents the mechanism of coordination of stakeholder interaction in the field of improving financial literacy of the population on the example of the Chuvash Republic. The emerging coordination mechanism includes the establishment of a single coordinating body responsible for the overall coordination, implementation, and monitoring of activities; a unified structure for obtaining and disseminating information among stakeholders; and expert support of initiatives. At the regional level, the key centers of financial education system development are the regional centers of financial literacy. The article also identifies the factors directly affecting the development of financial education system, which are shaped at the state level and impact the national system of financial education as a whole; factors specific to the region; and factors that take into account the unique features of the regional system.
Keywords: financial literacy, financial education, coordination, regional practice, population
JEL: D14, G10, R10
Funding: The study was supported by a grant from the Russian Science Foundation (project No. 24-28-20497) and the Chuvash Republic, https://rscf.ru/project/24-28-20497/.
For citation: Dmitrieva O.Yu. et al. (2025). Regional Practice of Coordination of Activities to Increase Financial Literacy of the Population. Financial Journal, 17 (2), 82–99 (in Russ.). https://doi.org/10.31107/2075-1990-2025-2-82-99.
© Dmitrieva O.Yu., Kadyshev E.N., Gorbynova P.G., Patyanova A.O., 2025

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A.S. Larionov
The Role of the State in the Creation and Development of an Ecosystem of Venture Capital Investment,
Startups and Technological Innovations in the Israeli Economy
, p. 100-121
Abstract
State programs for support, development and stimulation of venture capital investment implemented in the State of Israel between 1990 and 2024 have created a world-class innovation ecosystem. This study is devoted to the role of the state in stimulating venture capital investment within the country as part of the creation and development of the technological sectors of the state economy. The author formed a comprehensive view through the prism of Israel’s historical experience on the system of state support for venture investors, identifying elements of successful state experience that can be replicated in other countries. The advantages and disadvantages of key state support programs for the innovation ecosystem were considered: Magnet, Magneton, Magnet Consortia, Tnufa, Yozma, Yozma-2, Superfund, the incubator and accelerator programs. The results of the state support programs were evaluated through an analysis of their impact on the KPIs of the venture ecosystem in Israel. The relevance of the research topic is due to the growing role of state institutions and programs in supporting and stimulating the innovative economy, developing small technology companies, attracting venture capital investment to achieve technological sovereignty of the country.
Keywords: startups, R&D, innovation, venture capital investment, technology sector, universities, technology transfer
JEL: G21, G23, G24, O30
For citation: Larionov A.C. (2025). The Role of the State in the Creation and Development of an Ecosystem of Venture Capital Investment, Startups and Technological Innovations in the Israeli Economy. Financial Journal, 17 (2), 100–121 (in Russ.). https://doi.org/10.31107/2075-1990-2025-2-100-121.
© Larionov A.C., 2025

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P.O. Shchukina, P.A. Lavrinenko, A.G. Mirzoyan, A.A. Galich
The Relationship between Corporate Governance Quality and Dividend Payments
of Russian Stock Market Companies: A Quality Index Approach
, p. 122-136
Abstract
The article analyzes the relationship between the quality of corporate governance and the size of dividend payments. The purpose is to assess the relationship between the degree of compliance with the recommendations of the Bank of Russia on corporate governance and the size of dividend payments of companies on the Russian stock market. The novelty of this work lies in the use of an index that allows to assess the quality of corporate governance in Russian companies based on the degree of compliance with the requirements of seven sections of the Bank of Russia Corporate Governance Code. When analyzing a sample of 28 public companies on the Russian stock market for the period from 2010 to 2022 using fixed-effects regression models, a positive relationship between the degree of compliance with the recommendations of the Bank of Russia and dividend payments was found. This is consistent with the outcome model: the higher the quality of corporate governance, the higher the level of dividend payments.
Keywords: corporate governance, corporate governance code, dividend payments, dividend yield, company, result model
JEL: G34, G35
For citation: Shchukina P.O., Lavrinenko P.A., Mirzoyan A.G., Galich A.A. (2025). The Relationship between Corporate Governance Quality and Dividend Payments of Russian Stock Market Companies: A Quality Index Approach. Financial Journal, 17 (2), 122–136 (in Russ.).
https://doi.org/10.31107/2075-1990-2025-2-122-136.
© Shchukina P.O., Lavrinenko P.A., Mirzoyan A.G., Galich A.A., 2025

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Financial Journal Vol.17 No.1 2025

CONTENTS

A.E. Abramov, M.I. Chernova, A.G. Kosyrev
Private and Collective Direct Investments in Popular Shares of Russian Companies
, p. 8-26
Abstract
The arrival of tens of millions of private investors to the stock exchange and their involvement in direct stock trading increases the relevance of empirical studies of the effectiveness of their strategies. The article analyzes for the first time the return and risks of the so-called people's portfolio published by the Moscow Exchange. The aim is to study the profitability and risks associated with investing in the most popular stocks on the Russian market, which are highlighted by the publication of the people's portfolio. This study confirms the phenomenon of “wisdom of the crowd” in the domestic stock market, as it shows that the yield of the people's portfolio is comparable with or even higher than that of the widely used Moscow Exchange indices. We reveal similar patterns in the investment preferences of private investors among Russian and American brokers. At the same time, the risk of herding behavior of private investors keeps increasing along with the concentration of their trades in a narrow range of high-profile stocks. In contrast to traditional mechanisms of increasing the risk of investors’ herding behavior through social networks and online brokerage applications, we show that popularization of people's portfolio by the stock exchange can have a similar effect. The returns of the people's portfolioare significantly lower than more diversified portfolios of Russian companies, which increases private investors’ risks from active trading strategies. The growing popularity of exchange-traded mutual funds does not yet allow private investors to take advantage of broader diversification, as the assets of these funds are dominated by the same stocks as in the people's portfolio. Investing in more diversified passive factor strategies could significantly improve the performance of both private investors and exchange-traded funds compared to investing in people's portfolio stocks. It would also help to improve the financing of new and growing companies on the Moscow Exchange.
Keywords: 
people’s portfolio, stock market, private investor, factor strategies, mutual investment funds, diversification
JEL: 
G10, G11, G17, G40
Funding: The article was prepared within the framework of the RANEPA state assignment research program.
For citation: 
Abramov A.E., Chernova M.I., Kosyrev A.G. (2025). Private and Collective Direct Investments in Popular Shares of Russian Companies. Financial Journal, 17 (1), 8–26 (in Russ.). https://doi.org/10.31107/2075-1990-2025-1-8-26.
© Abramov A.E., Chernova M.I., Kosyrev A.G., 2025

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V. I. Bartenev
Guarantee Instruments in International Development Finance: Factors, Dynamics and Prospects
, p. 27-44
Abstract
This paper examines the role of guarantee instruments in the modern system of international development finance and unveils the key factors affecting the dynamics and prospects of their use. The analysis shows that these instruments have existed for decades, but have gained prominence in the XXI century. Their recognition as indispensable tools for mitigating risks to private capital, particularly political risks, has been reflected in more mentions in milestone policy documents, organizational and intellectual efforts to revise statistical reporting rules and larger volumes of private finance mobilized. However, available OECD data show insufficient use of guarantees for development purposes, extreme disproportions in mobilized finance among providers (both bilateral and multilateral), beneficiary countries and sectors and a high portfolio heterogeneity. The prospects of the distribution of guarantees will be influenced by new statistical reporting principles and a number of powerful economic and noneconomic factors, such as: 1) a lack of progress on the Sustainable Development Goals; 2) worsening budgetary constraints in developed countries, hindering the increase in official development assistance; 3) intensifying geopolitical rivalries. A possible increase in the provision of development guarantees can only be welcomed. However, if it is accompanied by a reduction in funding for traditional aid programs affecting the fundamental factors of commercial and non-commercial risks, as well as prioritization of less vulnerable but more strategically important countries, the positive effect will fall short of expectations.
Keywords: guarantees, political risk insurance, development finance, official development assistance, statistical reporting, international financial institutions, private sector
JEL: F21, F35, F52, F53
Funding: This research was financially supported by the Russian Science Foundation, project No. 23-28-01060, https://rscf.ru/en/project/23-28-01060/.
For citation: Bartenev V.I. (2025). Guarantee Instruments in International Development Finance: Factors, Dynamics, and Prospects. Financial Journal, 17 (1), 27–44 (in Russ.). https://doi.org/10.31107/2075-1990-2025-1-27-44.
© Bartenev V.I., 2025

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I.I. Yakovleva
Restrictions on Cross-border Capital Flows: Evolution of the IMF’s Position and Key Trends
, p. 45-61
Abstract
The article describes the evolution of the International Monetary Fund’s position regarding restrictions on cross-border capital flows. The prerequisites of transition from one stage of evolution to another are discussed. Specific attention is paid to the adjustments of the IMF’s position after the Asian financial crisis and the global financial crisis of 2008–2009. There has been a revision of perceptions about the benefits and risks of moving towards a more open capital account. Particular attention is paid to the period after 2012, when the institutional approach to capital controls was proposed. Since then, it has defined the IMF's position with some additions and adjustments. Taking into account this institutional view, the experience of individual countries’ imposition of cross-border capital flow restrictions during the COVID-19 pandemic is examined. Moreover, using data from AREAER reports and de jure capital mobility indices, this paper attempts to identify the main trends in capital account restrictions for different groups of countries depending on their income levels and initial capital mobility. Conclusions are drawn about the possible reasons for changes in the IMF’s stance, as well as on the specifics of capital mobility faced by particular groups of countries. This is particularly relevant for Russia due to the capital controls introduced in 2022.
Keywords: capital controls, cross-border capital flows, institutional view, institutional approach, International Monetary Fund, capital inflow, capital outflow, liberalization
JEL: B27, F02, F32, F38
Funding: The article was prepared as part of the research project under the state assignment of RANEPA.
For citation: Yakovleva I.I. (2025). Restrictions on Cross-border Capital Flows: Evolution of the IMF’s Position and Key Trends. Financial Journal, 17 (1), 45–61 (in Russ.). https://doi.org/10.31107/2075-1990-2025-1-45-61.
© Yakovleva I.I., 2025

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A.I. Votinov, Ju.A. Polshchikova, K.A. Nersisyan
Macroeconomic Modeling in Post-pandemic Times
, p. 62-73
Abstract
Recent trends in the global world (the financial and coronavirus crises, global geopolitical uncertainty, etc.) put macroeconomic modeling in front of the need to consider crisis phenomena in models. In this paper we try to answer the question of what has changed in macroeconomic modeling due to the coronavirus crisis and other shocks that the global economy has faced recently. Based on the literature review, the current directions in the implementation of the main classes of macroeconomic models in the pandemic and post-pandemic periods are examined. First, approaches to forecasting in crisis conditions are analyzed. Then the emphasis is shifted to nowcasting and projections for short periods of time. Mathematical chaos theory is also considered in the context of forecasting under specific and large shocks. We also discuss general equilibrium models and the relevance of incorporating heterogeneity and epidemiologic concepts into the structure of such models. Finally, we point out to a multiscenario approach to analyzing fiscal sustainability through models in the context of the unprecedented increase of government burdens faced by many countries during crisis.
Keywords: macroeconomic modeling, coronavirus crisis, COVID-19, forecasting, projections, dynamic and static general equilibrium models, public debt sustainability analysis
JEL: E10
For citation: Votinov A.I., Polshchikova Ju.A., Nersisyan K.A. (2025). Macroeconomic Modeling in Post-pandemic Times. Financial Journal, 17 (1), 62–73 (in Russ.). https://doi.org/10.31107/2075-1990-2025-1-62-73.
© Votinov A.I., Polshchikova Ju.A., Nersisyan K.A., 2025

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I.K. Klioutchnikov, T.V. Saakyan
Economic Foundations of Rationality and Efficiency of State Subsidies to Business Entities
, p. 74-91
Abstract
Subject. Rationality and efficiency of budgeting state subsidies to business entities. Objectives. To develop a science-based system for assessing the rationality and effectiveness of the process of state subsidization of business entities. Results. The interrelation of rationality and efficiency of the process of budgeting subsidies to business entities is substantiated. Determination of the logic of conceptual justifications of rationality of subsidies budgeting and efficiency of their provision as a single process allowed to open a new research space for modeling and studying the effectiveness of the impact of subsidies both on business entities and on the budget. The schemes of interaction between the state and commercial organizations are analyzed. A modification of ideas about the principles of rationality and efficiency of neoclassical economic theory is proposed. Conclusions. Scientific views on the rationality and efficiency of subsidy budgeting are changing in the process of theory development, economic transformations and clarification of development goals. Model constructions of subsidies movement after their provision from the budget are developed, which will allow us to move to the assessment of the rationality and efficiency of the impact of subsidies on commercial organizations.
Keywords: subsidies, rationality, effectiveness, budgeting, financial assistance
JEL: H21, H25
For citation: Klioutchnikov I.K., Saakyan T.V. (2025). Economic Foundations of Rationality and Efficiency of State Subsidies to Business Entities. Financial Journal, 17 (1), 74–91 (in Russ.). https://doi.org/10.31107/2075-1990-2025-1-74-91.
© Klioutchnikov I.K., Saakyan T.V., 2025

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B.I. Alekhin
Ruble Debt Burden
, p. 92-107
Abstract
The burden of ruble debt is measured by a ratio between the amount of rubles that Russians borrowed from their banks and their monetary income. Why ruble debt only? The share of foreign currency credit to Russian households has been declining quite steadily and remained insignificant in recent years. Even in the peak of 2010 it fluctuated around 10%. The purpose of this study is to analyze the size, dynamics and determinants of debt burden. To achieve this purpose, a panel for 81 regions of the Russian Federation for 2000–2022 was assembled on the basis of official statistics. All variables proved to be non-stationary which allowed to use panel dynamic least squares (DOLS) to estimate the parameters of the cointegrating equation. The estimates proved the existence of long-term, equilibrium relationship between debt burden and explanatory variables. To support our empirical search for drivers of debt burden we relied on the theories of life-cycle, liquidity constraints and behavioral finance. The first two proved to be useful, while the role of behavioral finance remained unclear as it was impossible to operationalize such a murky concept as financial literacy. In accordance with the life-cycle theory, the share of working-age population in the region’s entire population proved to be the main driver of debt burden growth. We also found out that debt burden is positively related to housing prices and liquidity constraints measured by the income required to get the bank loan approved. Finally, the cycle of economic activity also adds to the dynamics of debt burden with the latter increasing in bad times. All these variables are cointegrating partners of debt burden in Russia.
Keywords: mortgage and consumer loans, debt burden, cointegration, regions, Russia
JEL: G51, G21, C58
For citation: Alekhin B.I. (2025). Ruble Debt Burden. Financial Journal, 17 (1), 92–107 (in Russ.). https://doi.org/10.31107/2075-1990-2025-1-92-107.
© Alekhin B.I., 2025

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Yu.G. Lavrikova, E.O. Wegner-Kozlova, O.N. Buchinskaia
Organizational and Economic Barriers to the Development of Sustainable
Finance (on the Example of Large Industrial Businesses in the Ural Region)
, p. 108-125
Abstract
Despite the fact that the green finance market in Russia is actively developing, its growth rates still lag behind foreign countries. In order to create incentives to include ESG agendas in the strategic plans of the industrial sector, as well as to adapt financial market participants to new types of risks associated with sustainable development, it is necessary to identify and solve a number of organizational and economic problems. In particular, it is necessary to determine barriers to the development of sustainable investment in ESG projects from the perspective of the real economy sector, which determines the relevance of the study. The purpose of the study was to identify the reasons for the low spread of ESG projects in the activities of the large industrial sector of the Ural region in order to adapt the implementation of the ESG agenda to the needs of enterprises and the national interests of the Russian Federation. The objectives of the study included identifying the attitude of large industrial enterprises in the Ural region to the ESG agenda in terms of corporate and legal issues and operational activities and attitudes to the climate and environmental agenda, as well as determining the readiness of large businesses to use green finance and to disclose information about non-financial reporting and risks. The methodological basis of the study was the results of a questionnaire survey of management personnel responsible for consolidating ESG policy at large industrial enterprises in the Ural region. The results are as follows. All the companies surveyed expressed concerns that disclosure of information in ESG reporting could be used by unfriendly countries for political purposes or by other entities as an instrument of unfair competition. At the same time, the respondents demonstrated significant attention to the negative environmental impact of production activities. In the matters of the climate agenda, respondents are currently guided by legislative requirements. Insufficient attention is also paid to ESG training of personnel. The findings can be useful for creating incentives to include the ESG agenda in the strategic plans of the industrial sector, as well as for adapting green finance market players to new types of risks associated with sustainable development.
Keywords: ESG agenda, ESG reporting, green finance, disclosure, green transition challenges
JEL: D22, G32, L53
For citation: Lavrikova Yu.G., Wegner-Kozlova E.O., Buchinskaia O.N. (2025). Organizational and Economic Barriers to the Development of Sustainable Finance (on the Example of Large Industrial Businesses in the Ural Region). Financial Journal, 17 (1), 108–125 (in Russ.).
https://doi.org/10.31107/2075-1990-2025-1-108-125.
© Lavrikova Yu.G., Wegner-Kozlova E.O., Buchinskaia O.N., 2025

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Financial Journal Vol.16 No.6 2024

CONTENTS

I.A. Yakovlev, A.A. Tikhonova, V.Yu. Cherkasov
Cross-border Transactions: Challenges and Possible Solutions for BRICS
, p. 8-23
Abstract
The article critically examines the idea of a supranational accounting and settlement unit of BRICS. The theoretical and historical excursion brings us closer to understanding the nature of modern money and leads to the conclusion about the reasons why the national fiat unit serves as a means of international liquidity. The experience of European monetary integration is analyzed through the prism of the theory of the optimal currency area. The bottlenecks of international settlements and possible infrastructural solutions based on a central bank digital currency or multilateral clearing are considered. It is proved that multilateral clearing is an effective means of addressing the challenges in cross-border settlements, while the solutions leading to currency integration are possible only if the economic benefits exceed the damage to national monetary sovereignty.
Keywords:
BRICS, money, international liquidity, supranational currency, monetary integration, clearing, CBDC
JEL:
B11, B12, E40, E42, E65, F33, F34, F36, N10, O31
Acknowledgments:
The authors express their gratitude to their colleague Dr. Alexey Ponomarenko for the opportunity to present in the article his idea of a parsimonious settlement scheme on a digital platform using a notional supranational asset.
Note:
This article expresses the opinion of the authors and should not be considered as a source reflecting the official position of Financial Research Institute.
For citation:
Yakovlev I.A., Tikhonova A.A., Cherkasov V.Yu. (2024). Cross-border Transactions: Challenges and Possible Solutions for BRICS. Financial Journal, 16 (6), 8-23 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-8-23.
© Yakovlev I.A., Tikhonova A.A., Cherkasov V.Yu., 2024

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I.V. Naumov, A.A. Bychkova, N.L. Nikulina
Theoretical and Methodological Approach to Assessing the Probability of Bankruptcy of Enterprises in Economic Sectors, p. 24-41
Abstract
In the context of the rapidly changing geopolitical situation and sanctions pressure on the Russian economy, it is critically important to assess the financial stability of enterprises, forecast the risks of decline in their financial solvency and the probability of bankruptcy in order to make effective management decisions on the development of economic sectors in the constituent entities of the Russian Federation. Currently existing methodological approaches to analyzing the probability of enterprise bankruptcy do not allow to fully assess the financial condition of economic sectors in the regions of Russia. The purpose of the work is to identify the advantages and disadvantages of the methods used in practice to analyze the financial solvency of enterprises and their adjustment to forecast the probability of bankruptcy of enterprises in the constituent entities of the Russian Federation. The novelty of the developed methodological approach is the use of multidimensional discriminant analysis of the probability of bankruptcy of enterprises in a specific sector of the economy in a constituent entity of the Russian Federation according to the modified Altman model, which eliminates the factor characterizing the ratio of the market value of shares of all enterprises in the industry to the sum of all liabilities, as well as the calculation of integral values of the probability of bankruptcy of enterprises in the industry with a breakdown into large, medium and small enterprises to study the scale of threats to financial solvency, taking into account industry specifics. In the course of the research the following results were obtained: an original methodological apparatus for assessing the probability of bankruptcy of enterprises in various sectors of the economy was developed, including the calculation of individual threshold values for each sector in the region based on the dynamics observed over a long period of time; zones of probability of bankruptcy of enterprises were determined. The resulting methodology was tested at enterprises of water supply, wastewater disposal, waste collection and utilization and pollution elimination in the Sverdlovsk region. The analysis of their financial condition revealed an increased probability of their bankruptcy. Moreover, the most vulnerable were both the largest and small enterprises which have insufficient liquidity of assets, lack of working capital and developing mainly at the expense of borrowed funds and attracted loans. As a result of the study, not only the insufficient level of financial stability and solvency of water supply, wastewater disposal, waste collection and utilization and pollution control enterprises in the Sverdlovsk region, but also a decreasing in the level of asset turnover and especially accounts receivable, as well as a high level of their debt load, were identified/designated (as the first/main signs of the threat of bankruptcy). The methodology modified by the authors allows to timely determine the probability of bankruptcy for all enterprises (large, medium, and small) taking into account the industry specifics and to initiate appropriate measures to prevent the critical financial condition of enterprises.
Keywords: bankruptcy probability, bankruptcy models, financial stability, economic sectors, multivariate discriminant analysis
JEL: G33
Funding: The research was supported by the Russian Science Foundation grant №24-28-00704 "Scenario modeling and forecasting of bankruptcy risks of industries in the Sverdlovsk region" (https:// rscf.ru/project/24-28-00704/).
For citation: Naumov I.V., Bychkova A.A., Nikulina N.L. (2024). Theoretical and Methodological Approach to Assessing the Probability of Bankruptcy of Enterprises in Economic Sectors. Financial Journal, 16 (6), 24-41 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-
24-41.
© Naumov I.V., Bychkova A.A., Nikulina N.L., 2024

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A.E. Abramov, M.I. Chernova
IPO of Russian Companies: Theory, Indicators, Trends and Prospects
, p. 42-60.
Abstract
Since 2022, a new wave of IPO deals in Russia has shown that the stock market continues to successfully perform capital raising functions in a challenging environment. However, when analyzing current trends, the historical data on Russian IPOs accumulated since 1996 is often not taken into account. The purpose of the article is to identify the main trends in public offerings of Russian companies’ shares from 1996 to July 2024 and the features of the new wave of IPO deals since 2022. The analysis is based on a unique database on 185 IPOs and 88 SPOs. An extensive review of studies explaining the first trading day underpricing and subsequent cumulative abnormal returns (CAR) has revealed the importance of monitoring these indicators for assessing the performance of Russian IPOs. The empirical analysis has shown that the Russian IPO-SPO stock market in 2023–2024 is significantly inferior to deals in the previous historical period in terms of volume and size. However, the size of underpricing and CAR for the first 100 and 250 trading days of the new wave of IPOs is significantly higher, which indicates the greater efficiency of current deals for investors. A positive trend of the new wave is the predominance of IPOs over SPOs and cash-in deals over resale deals. Unlike many studies of foreign markets, this analysis has shown that the size of the first trading day underpricing has a positive effect on the cumulative excess return of shares over the medium-term time horizon. The significance of this relationship has noticeably increased in the new wave of deals, which may become an important factor in the growing popularity of IPOs and the inflow of new capital into the financial markets in Russia.
Keywords: initial public offering, secondary public offering, underpricing, cumulative abnormal return, financial market
JEL: G10, G11, G14, G17, G19
Funding: The article was written on the basis of the RANEPA state assignment research program.
For citation: Abramov A.E., Chernova M.I. (2024). IPO of Russian Companies: Theory, Indicators, Trends and Prospects. Financial Journal, 16 (6), 42-60
(in Russ.). https://doi.org/10.31107/2075-1990-2024-6-42-60.
© Abramov A.E., Chernova M.I., 2024

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S.I. Rybakov, A.M. Shaikin
Mutual Insurance in Russia: Current State, Constraints and Paths of Development
, p. 61-80
Abstract
The authors analyze the main factors affecting the development of mutual insurance in the Russian Federation: economic conditions, imperfect legislation, regulatory barriers and competition with alternative risk protection instruments. The article compares the competitiveness of mutual insurance against commercial insurance and highlights its advantages and disadvantages. It emphasizes the potential of mutual insurance to contribute to the economic stability and sovereignty of the Russian Federation, especially in the face of sanctions pressure on the Russian economy. The authors also emphasize the importance of implementing successful international experience and adapting Russian legislation to promote the growth of mutual insurance. The article reveals the fundamental contradiction between the interests of insurance consumers, such as households and the corporate sector (including companies with predominant state participation), and the functioning of the mutual insurance mechanism. The authors analyze quantitative indicators of mutual insurance in Russia from 2013 to 2023. The obtained data are compared with the results from the Russian insurance market and voluntary property insurance. The article proposes measures to improve the Russian mutual insurance market. These measures include state support, reduction of regulatory burden and expansion of the scope of mutual insurance in the interests of ensuring Russia’s economic sovereignty.
Keywords: insurance, mutual insurance, Russian insurance market, sanction, state policy in the insurance industry
JEL: G22, G28
Funding: The article was written on the basis of the Financial Research Institute state assignment research program.
For citation: Rybakov S.I., Shaikin A.M. (2024). Mutual Insurance in Russia: Current State, Constraints and Paths of Development. Financial Journal, 16 (6), 61-80  (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-61-80.
© Rybakov S.I., Shaikin A.M., 2024

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V.V. Olkhovik, R.S. Afanasev
Improvement of the System for Implementing Budget Revenue Administration Powers in the Russian Federation, p. 81-96
Abstract
At present, in the context of the task of modernization of the budget revenue management system and transition to a unified digital register model of administration, ensuring the formation of up-to-date information on revenue sources of the budget is of particular importance. The purpose of this article is to develop proposals for improving the system of implementation of revenue administration powers, taking into account the identified problem areas during the transition to a new system of assigning powers to the chief administrators of budget revenues on a permanent basis. The authors analyze the completeness and quality of information on budget revenue sources based on the requirements of the Ministry of Finance of Russia and assess the existing system of budget revenue administration. In the course of the study the shortcomings of the current system of formation and implementation of revenue administration powers were revealed and the ways to eliminate them were proposed. The article describes the main challenges that hinder the implementation of budget revenue administration powers in the subjects of the Russian Federation. Thus, some regions face various difficulties in the interaction of participants in the process of formation and maintenance of lists through information systems. There are examples when the information necessary for the list compilation is either not provided or not provided in full. Based on the identified problems, recommendations are offered to improve the system of implementation of budget revenue administration powers, including procedures for interaction between participants of the budget process. These recommendations are aimed at enhancing the efficiency of budget revenue administration, improving forecasting and digitalization of processes to ensure greater transparency and operational management of public finances.
Keywords: budget revenue administration, budget revenue sources, digital registry model, chief administrators of budget revenues, Russian regions, modernization of revenue management system
JEL: H83
Funding: The article was written as part of scientific and methodological research under the state assignment of the Financial Research Institute.
For citation: Olkhovik V.V., Afanasev R.S. (2024). Improvement of the System for Implementing Budget Revenue Administration Powers in the Russian Federation. Financial Journal, 16 (6), 81-96 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-81-96.
© Olkhovik V.V., Afanasev R.S., 2024

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I.P. Dovbiy, Zh.A. Mingaleva, E.E. Zhulanov
Managing the Development of Regional Industrial Potential: Integrating Climate Finance into Investment Strategies
, p. 97-115
Abstract
The requirements for the implementation of climate policy are becoming increasingly important in the processes of formation of global and local value chains and directly affect the development of export potential of both individual economic entities and regions. The purpose of the study is to develop recommendations for improving the tools for managing the development of industrial potential of regional systems under the current conditions of financing the climate agenda in the amount of the country’s commitments. The article analyzes the investment and financial conditions and factors determining the region’s export potential in the context of the implementation of two strategies of the climate agenda — mitigation and adaptation to climate change. A comparative analysis was carried out for the regions located along the middle and lower reaches of the Volga River. The analysis included the following meso- and micro-level areas: investment climate characteristics; conditions for financing of economic entities; investment and innovation activity of the regions and commitment to ESG principles of business entities and regional authorities; quality and elaboration of regional investment standards and climate change adaptation plans, etc. The analysis has shown the impact of the climate agenda, implemented in climate change mitigation and adaptation strategies, on the export potential of the Russian regions under study. It is concluded that the regions are not sufficiently prepared for the growing challenges of the climate agenda and the financial system is poorly developed in relation to the climate agenda. It is shown that a clear identification and understanding of the factors and conditions contributing to the inclusion of national economic entities in value chains can help government agencies and economic entities make effective decisions on the implementation of measures to ensure the formation of favorable investment and financial conditions for managing the development of the region’s industrial potential.
Keywords: climate agenda, industrial potential, investment and financial instruments, regions, development management, The CSDDD Directive
JEL: G23, G28
For citation: Dovbiy I.P., Mingaleva Zh.A., Zhulanov Е.Е. (2024). Managing the Development of Regional Industrial Potential: Integrating Climate Finance into Investment Strategies. Financial Journal, 16 (6), 97-115  (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-97-115. 
© Dovbiy I.P., Mingaleva Zh.A., Zhulanov Е.Е., 2024

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E.I. Skobleva
State Development Programs as a Tool for Financing Education
, p. 116-131
Abstract
The article is devoted to the issues of education financing with a focus on the application of state development programs aimed at supporting education in Russia. The author analyzes the results of the implementation of federal target programs, state programs and, as part of them, national projects and federal projects in the field of science and education. The study pays special attention to the analysis of public expenditures on higher education, which is largely financed from the federal budget. Higher education is the most important factor in the economic and social development of the country, as it largely forms the human capital, which opens up opportunities for the search for non-standard solutions, creation of new knowledge and development of technologies. One of the objectives of sustainable development in the field of education is to ensure equal access to quality vocational and higher education, including university education. The aim of the paper is to study the problems of using program instruments of education financing in Russia. The author considers federal target programs as a form of “pinpoint” financial support of the education system; shows the mechanism of transition to the program method of education financing and the transformation of program documents that determine the volume and directions of education financing; examines national projects in the context of program financing of education; analyzes the items of federal budget expenditures on higher education and draws conclusions about their content and dynamics. The article is based on official statistical data and analytical reports of the Ministry of Finance of the Russian Federation, the Federal Treasury, and the Accounts Chamber of the Russian Federation.
Keywords: education financing, higher education, sustainable development, science and universities, state program, national projects, program-target method
JEL: H52, I22, I25, O38
For citation: Skobleva E.I. (2024). State Development Programs as a Tool for Financing Education. Financial Journal, 16 (6), 116-131 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-116-131.
© Skobleva E.I., 2024

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Financial Journal Vol.16 No.5 2024

CONTENTS

I.V. Nikonov, M.G. Arustamyan, O.R. Mukhametov, A.I. Votinov, S.A. Radionov
Transformation of Public Debt Structure by Creditors in Central Asian and South Caucasus Countries
, p. 8-26
Abstract
The rapid growth of public debt in developing countries in recent years and the increasing risks associated with this process emphasize the importance of research in this area. The article examines one of the key aspects of public debt management — the structure of creditors’ debt portfolio. The object of the study is the public debt of four countries of Central Asia and three countries of the South Caucasus. The states of this region are important foreign economic partners of Russia, their contribution to mutual trade and realization of joint projects is growing. Their role in the global and regional economy is also expanding, including participation in major transport and logistics projects designed to increase the connectivity of Eurasia. The study is based on the data of international organizations on the total volume of public debt, debt to individual external creditors and the dynamics of macroeconomic indicators. The article examines changes in the structure of the main groups of creditors for each country over three long-term periods and analyzes similarities and differences in the observed structural shifts. It also decomposes the indicator of public debt dynamics and estimates the contribution of the economic growth factor and the effects of changes in countries’ debt to certain groups of creditors. The study identified the following key trends in public debt structural changes: 1) the declining role of bilateral loans from developed and developing countries since the 2000s; 2) the continued strong influence of debt raised from international financial organizations and development banks in most countries throughout the period under study; 3) in a number of countries, a gradual increase in market sources of debt financing (domestic and Eurobonds); the increasing role of loans from China — in the Kyrgyz Republic and the Republic of Tajikistan, etc. The study identifies reasons for these structural changes, and concludes with a discussion of the risks associated with the observed shifts in the structure of public debt.
Keywords: public debt, external debt, creditor structure, Central Asia, South Caucasus
JEL: F34, H63
For citation: Nikonov I.V. et al. (2024). Transformation of Public Debt Structure by Creditors in Central Asian and South Caucasus Countries. Financial Journal, 16 (5), 8–26 (in Russ.). https://doi.org/10.31107/2075-1990-2024-5-8-26.
© Nikonov I.V. et al., 2024

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V.Yu. Dodonov
Inter-budget Relations in Kazakhstan: State and Main Trends
, p. 27-42
Abstract
Balance of the state budget is one of the necessary conditions for the effective functioning of the budget system of the country. This balance is largely determined by inter-governmental fiscal relations and the resulting redistribution of financial resources between the central, regional and local levels of the budget system. Inter-budget relations in Kazakhstan over the past two decades have undergonesignificant changes, which further increased the relevance of research on this topic. Such aspects of inter-budget relations as the increase in the volume and specific weight of transfers from the republican budget to the budgets of lower state bodies, the growth of the number of subsidized regions, the reduction of revenues to the republican level from the regional level, caused special attention to this problem in the budget process of Kazakhstan. The article examines the state and development of inter-budget relations in Kazakhstan in terms of these aspects in order to identify the main trends of their transformation and assess their impact on the budget process. The article analyses the main parameters of inter-budget relations in Kazakhstan, reveals trends in the role of subsidies and exemptions from local budgets, and considers the dynamicsof the number of subsidized regions and donor regions of the republican budget. It is noted that there is no noticeable improvement in the situation at the level of regional budgets, despite the increase in their revenue base due to the transfer of a number of tax revenues to the local level in 2020. Based on the analysis, the author concludes that the situation in the sphere of inter-budget relations in Kazakhstan is deteriorating, which is manifested in a constant decrease in the number of donor regions and an increase in the number of regions receiving subsidies, an increase in the share of subsidies in the revenues of local budgets, and a decrease in the share of exemptions from local budgets in the state budget revenues. It is also noted that the imbalance of inter-budget relations leads to the complication of the budget process at the republican level, which requires the adoption of measures to further increase the financial independence of the regions.
Keywords: state budget, Inter-budget relations, local budgets, subventions, exemptions
JEL: H77
Funding: the study was financially supported by grant No. IRN AR23489872 “Monitoring of interethnic relations in the southern regions of Kazakhstan” of the Committee of Science of the Ministry of Science and Higher Education of the Republic of Kazakhstan.
For citation: Dodonov V.Yu. (2024). Inter-budget Relations in Kazakhstan: State and Main Trends. Financial Journal, 16 (5), 27–42 (in Russ.).
https://doi.org/10.31107/2075-1990-2024-5-27-42.
© Dodonov V.Yu., 2024

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M.S. Makushkin
Yield Factors of Additional Tier 1 Bonds, p. 43-59
Abstract
Additional Tier 1 bonds (AT1 bonds) are hybrid financial instruments issued by banks under Basel III. In case of a threat to the financial stability of an institution, these bonds can be converted into equity or written down to help the bank meet capital requirements. AT1 bonds are designed to insure a bank against a potential capital shortfall and minimize the need for a regulatory bail-out. AT1 bonds gained new attention after the collapse of Credit Suisse (CS), when all outstanding AT1 bonds issued by the bank were written down to zero. This paper provides an overview of AT1 capital, compares the main types of AT1 bonds and describes their most common features. In addition, it quantifies the risk premium in AT1 bond yields and identifies the main factors underlying this premium. The analysis is supported by real data on AT1 issuance in Europe. It is shown that in the primary market investors demand a significant premium from banks for the additional risk embedded in AT1 bonds. The size of the premium depends mostly on issuer-specific factors such as issuer’s credit risk, capital ratio, stock volatility and asset size. On the contrary, security design turns out to be a less important pricing factor. The author compares the results before and after the CS crash and concludes that the CS AT1 write-down did not directly affect the pricing principles in the market. The results of the research may be useful both for investors looking for yield pickup in financial sector and for banks working on the optimal design for their AT1 bonds.
Keywords: AT1 bonds, contingent convertible bonds, bank capital, yield, Basel III
JEL: G12, G13, G21
For citation: Makushkin M.S. (2024). Yield Factors of Additional Tier 1 Bonds. Financial Journal, 16 (5), 43–59 (in Russ.).
https://doi.org/10.31107/2075-1990-2024-5-43-59.
© Makushkin M.S., 2024

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V.V. Gromov
Establishment of Special Economic Zones after the Moratorium: Motives, Trends, Patterns
, p. 60-77
Abstract
Improvement of the investment climate is one of the main priorities of the Russian tax policy, in which special economic zones (SEZ’s) play a significant role. The pace of their creation has increased significantly in recent years. The main idea, as always, is to attract investment. However, the more such zones appear, the more obvious becomes the gap in defining the strategic role of the SEZ regime, which has already been introduced in dozens of Russian regions, but still lacks a clear conceptualization. Moreover, the revival of interest in SEZ’s contrasts sharply with the recent moratorium on their creation. Such dramatic changes have underlying motives, the understanding of which is necessary to avoid a superficial view of investment attraction policies. Since they are currently of particular importance for ensuring macroeconomic stability, the purpose of the article is to identify the problems that may hinder the effective application of the SEZ regime in Russia. On this basis, the article systematizes the prerequisites for lifting the moratorium, establishes patterns and explains trends in the creation of SEZ’s, as well as gives proposals for the development of the concept of economic zoning.
Keywords: investment, investment climate, SEZ, preferential tax treatment, special economic zone, region, tax policy, tax regime
JEL: E62, L52, R11
Funding: The article was written on the basis of the RANEPA state assignment research program.
For citation: Gromov V.V. (2024). Establishment of Special Economic Zones after the Moratorium: Motives, Trends, Patterns. Financial Journal, 16 (5), 60–77 (in Russ.). https://doi.org/10.31107/2075-1990-2024-5-60-77.
© Gromov V.V., 2024

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E.N. Timushev
Distribution of Federal Equalization Grants: Assessing the Impact of Major Changes
, p. 78-96
Abstract
The purpose of the work is to establish how the main changes in the methodology of distribution of grants from the federal budget for fiscal capacity equalization affected the budget revenues of the constituent entities of the Russian Federation. The relevance of the study is due to the fact that the way of distribution of non-earmarked interbudget transfers affects the effectiveness of the model of interbudget relations. The modeling of the values of the transfers allocated annually to each constituent entity of the Russian Federation has been performed, demonstrating the adequacy of the developed methodology. The consequences of all major changes in the methodology of allocation of subsidies, such as introduction of restrictions on the reduction and increase of transfers, launching the mechanism of the model budget, reducing the equalization criterion and adding the coefficient of the level of social burden to the index of budget expenditures, have been calculated. It was found that the changes in the distribution methodology were progressive, that is, the higher was the fiscal capacity before the distribution, the smaller was the annual increase in equalization grants as a result of the changes. In other words, over time, more and more funds were allocated to the least prosperous regions. The regions of the North Caucasus Federal District benefited the most from the changes, and in general, all the innovations, except for restrictions on the reduction and increase in subsidies, had approximately the same spatial effect in terms of the composition of the “winning” regions. At the same time, it is more difficult to draw conclusions about the “losing” regions, since they have different levels of fiscal capacity.
Keywords: equalizing transfers, model budget, equalization criterion, interbudget transfers, budget expenditure index
JEL: H77
Funding: The manuscript is based on the results of research carried out within the framework of the state assignment of RANEPA.
For citation: Timushev E.N. (2024). Distribution of Federal Equalization Grants: Assessing the Impact of Major Changes. Financial Journal, 16 (5), 78–96 (in Russ.). https://doi.org/10.31107/2075-1990-2024-5-78-96.
© Timushev E.N., 2024

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A.L. Osmolovskaya-Suslina, S.R. Borisova
Simplified Taxation System: First Estimates of 2024 Changes in Tax Legislation
, p. 97-108
Abstract
Changes to the simplified taxation system (STS) introduced in the course of the tax system fine-tuning will significantly alter its design: income limit requirements will be expanded and STS payers will be recognized as VAT payers. The objective of this study is to find out what percentage of STS and CIT payers will be affected by these changes. For this purpose, a distribution of STS and CIT payers by income level was plotted. Information from tax forms of the Russian Federal Tax Service, Registers of SMEs and the SPARK database for the period 2019–2022 was used as input data. It was found that there is a shift in the structure of both STS and CIT taxpayers towards lower incomes: about 70% of CIT payers and about 90% of STS payers earn less than RUB 60 million per year. The analysis revealed that for 85% of STS payers the reform will be neutral, while for 9% the situation will slightly worsen. The winners of the reform will be those companies that will switch from CIT to STS. This transition will be formally available for 87% of CIT payers, and most of them will switch due to the possibility to pay VAT. Expansion of income limits under STS may become a decisive factor for only 10% of CIT payers.
Keywords: SME, simplified tax system, CIT, tax reform, taxpayers
JEL: H2, H71, K34
For citation: Osmolovskaya-Suslina A.L., Borisova S.B. (2024). Simplified Taxation System: First Estimates of 2024 Changes in Tax Legislation. Financial Journal, 16 (5), 97–108 (in Russ.). https://doi.org/10.31107/2075-1990-2024-5-97-108.
© Osmolovskaya-Suslina A.L., Borisova S.B., 2024

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V.V. Klimanov, A.A. Mikhaylova
Improving Russia’s Tax System in 2024: Сross-country Comparisons and Regional Projection
, p. 109-120
Abstract
The article discusses the additional adjustment of the tax system carried out in the Russian Federation in 2024, primarily in terms of changes in the rates of corporate income tax and personal income tax. Based on the analysis, a conclusion is made about the comparability of the levels of these taxes in Russia and in some countries of the Organization for Economic Cooperation and Development. It is shown that the centralization of additional revenues arising from the ongoing improvement of the tax system is more effective than the potential redistribution of these revenues to regional budgets due to the high concentration of corporate income tax and personal income tax in the wealthiest regions of Russia.
Keywords: tax policy, progressive taxation, personal income tax
JEL: H21, H71, H87
Funding: The manuscript is based on the results of the research carried out within the framework of the RANEPA state assignment.
For citation: Klimanov V.V., Mikhaylova A.A. (2024). Improving Russia’s Tax System in 2024: Сrosscountry Comparisons and Regional Projection. Financial Journal, 16 (5), 109–120 (in Russ.). https://doi.org/10.31107/2075-1990-2024-5-109-120.
© Klimanov V.V., Mikhaylova A.A., 2024

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D.Yu. Fedotov
Taxes and Customs Duties as Instruments of Oil Rent Withdrawal to the Russian Budget Revenue
, p. 121-139
Abstract
For countries focused on the extraction and processing of natural resources, including Russia, the crucial task is to ensure the rational extraction and distribution of natural rent. The tax model applied to natural rent should facilitate its optimal allocation to the budget without undermining the motivation of resource users to invest. The purpose of this study is to gauge the extent of oil rent extraction to the Russian budget and to propose strategies to improve the efficiency of oil rent redistribution to the state budget. According to the author’s hypothesis, export customs duties, compared to the mineral extraction tax, are more effective in achieving the desired redistribution of funds from resource users to the budget. The analysis shows that from 2005 to 2022 up to 87% of the oil rent received in Russia was extracted through rent payments to the state budget. However, in recent years the degree of oil rent extraction has decreased to 56%. This decline can be attributed to the tax maneuver initiated in Russia since 2015, entailing the reduction and eventual abolition of export customs duties and an increase in the mineral extraction tax rate. The results obtained indicate a decline in effectiveness of rent-based taxation in Russia due to the decreasing fiscal significance of rent payments. Furthermore, their regulatory function, designed to stimulate taxpayers to make investments, has weakened. These findings provide valuable insights for shaping fiscal policies and lay the foundation for further research in this area.
Keywords: tax, oil rent, customs duty, mineral extraction tax, tax maneuver, investment, correlation analysis
JEL: E62, H21
Funding: The article is based on the results of research carried out at the expense of budgetary funds under the state assignment of the Financial University under the Government of the Russian Federation.
For citation: Fedotov D.Yu. (2024). Taxes and Customs Duties as Instruments of Oil Rent Withdrawal to the Russian Budget Revenue. Financial Journal, 16 (5), 121–139 (in Russ.). https://doi.org/10.31107/2075-1990-2024-5-121-139.
© Fedotov D.Yu, 2024

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Scientific periodical

ISSN 2658-5332