Project Finance in Iran: Lessons and Relevance for Project Financing in the Russian Federation

This article presents a comprehensive analysis of the institutional, financial, and legal foundations of project financing in the Islamic Republic of Iran, with particular emphasis on the impact of long-term international sanctions. The structural features of the Iranian project finance market are examined, including the application of Islamic banking principles, national civil law, and sovereign participation mechanisms. The effects of sanctions on the availability of financial resources are assessed, with special attention given to the strategies developed by Iranian market participants to operate under the prevailing restrictions. The study identifies the main categories of project finance lenders and systematizes the financial instruments applied in Iranian practice, including Islamic financing tools, hybrid contractual structures, and risk-sharing mechanisms between public and private participants. Particular focus is placed on the use of intermediary companies in friendly jurisdictions for cross-border payments. The findings suggest that Iran’s experience offers practical insights for jurisdictions operating under comparable sanctions regimes, including the Russian Federation. Specifically, the Iranian model demonstrates the potential for the effective use of alternative financial structures and non-traditional investment instruments to ensure project implementation