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Current State of the Green Finance Market in Russia and Its Prospects

Author

Listed:
  • E. A. Kopalkina

    (Financial Research Institute, Moscow, Russian Federation)

  • M. G. Arustamyan

    (Financial Research Institute, Moscow, Russian Federation)

  • M. M. Minasyan

    (Institute of Economics of the National Academy of Sciences of the Republic of Armenia, Yerevan, Armenia; Armenian State University of Economics, Yerevan, Armenia)

  • S. A. Avetisyan

    (Armenian State University of Economics, Yerevan, Armenia)

  • R. Y. Mangasaryan

    (Armenian State University of Economics, Yerevan, Armenia)

Abstract

This article presents a meta-analysis of the Russian green finance market based on open sources and regulatory documents. Since 2018, green instruments have been actively introduced in the Russian financial market. After the imposition of sanctions against Russia and the escalation of geopolitical tensions, the their issuance has significantly decreased. Nevertheless, green financial instruments in Russia continue to function, demonstrating certain adaptive tendencies. The purpose of this study is to analyze the current state of the Russian green finance market and to identify the prospects for its further development under the sanctions pressure. The paper summarizes the trends in the issuance of sustainable bonds in 2023–2024, identifies the types of green financial instruments commonly used in Russian practice, and considers potential directions for their diversification. The authors came to the following conclusions: 1) Russia has significant potential for the development of green finance at both the corporate and governmental levels; 2) Due to the increase in the key interest rate and other factors related to the complicated geopolitical situation, the volume of sustainable bond issuance in 2024 reached a record low; 3) Despite this, certain positive trends can be observed — the authorities are planning new projects and initiatives that could revitalize the sustainable bond market, and new green financial instruments continue to emerge; 4) Further activation of the market requires institutionalizing ESG culture among participants and increasing their competencies in green finance. Government authorities should popularize green financial instruments, in particular by reducing the level of transaction costs for issuers when issuing sustainable bonds and developing additional incentives for participants in this market.

Suggested Citation

  • E. A. Kopalkina & M. G. Arustamyan & M. M. Minasyan & S. A. Avetisyan & R. Y. Mangasaryan, 2025. "Current State of the Green Finance Market in Russia and Its Prospects," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 76-92, October.
    • Handle: RePEc:fru:finjrn:250505:p:76-92
    DOI: 10.31107/2075-1990-2025-5-76-92
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    References listed on IDEAS

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    1. Natalya A. Khutorova, 2024. "ESG Approaches in Securitization Transactions," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 2, pages 72-87, April.
    2. Igor A. Yakovlev & Lyudmila S. Kabir & Svetlana I. Nikulina, 2022. "The National Strategy for Financing the Energy Transition: Assessing Opportunities and Finding Solutions," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 5, pages 9-24, October.
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    Keywords

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    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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