The Central Bank of Russia reported that Russia’s sustainable development finance market expanded by 27% in 2025, attributing the growth mainly to its extension of risk-based regulatory incentives for priority sustainable development projects. The incentives apply to both loans and bonds and allow banks to reduce capital usage when financing qualifying projects. Depending on project quality, banks can apply a 10–15% reduction in risk weight. Since early 2025, companies have raised RUB 119 billion through corporate bond issues, with proceeds directed to infrastructure construction and transportation development; several additional registered issues totalling up to RUB 40 billion are expected to launch by end-2025. Sustainability bonds outstanding could reach RUB 255 billion by early 2026.
Central Bank of Russia 2025-12-08
Central Bank of Russia extends risk-based capital incentives for priority sustainable development projects as sustainable finance market grows 27% in 2025
The Central Bank of Russia announced a 27% growth in Russia's sustainable development finance market in 2025, driven by risk-based regulatory incentives for priority projects. These incentives allow banks to reduce capital usage by 10–15% for qualifying loans and bonds. Companies have raised RUB 119 billion through corporate bonds for infrastructure and transportation, with sustainability bonds potentially reaching RUB 255 billion by early 2026.