SPECIAL PURPOSE VEHICLES IN POST-SOVIET LEGAL SYSTEMS: STRUCTURING BANKRUPTCY-REMOTE ENTITIES FOR PROJECT FINANCE IN TRANSITIONAL ECONOMIES

Abdulayev, Sanjar

International Conference on Law, Governance and Social Transformation | Volume 1, Issue 1 (2025) | Pages 38-43

SPECIAL PURPOSE VEHICLES IN POST-SOVIET LEGAL SYSTEMS: STRUCTURING BANKRUPTCY-REMOTE ENTITIES FOR PROJECT FINANCE IN TRANSITIONAL ECONOMIES

Sanjar Abdulayev ^*

Cluster Contracts Manager ACWA Power Uzbekistan

Abstract

Special Purpose Vehicles (SPVs) are essential in project finance for isolating risks and achieving bankruptcy remoteness, particularly in post-Soviet legal systems where civil law traditions pose unique challenges. This article examines the structuring of SPVs in transitional economies like Russia, Kazakhstan, and Central Asia, drawing on authentic sources to analyze legal adaptations, bankruptcy-remote mechanisms, and implementation hurdles. Findings reveal adaptations such as orphan structures, true sales, and non-petition clauses, while highlighting issues like judicial bias and enforcement gaps. The discussion addresses implications for investment attraction and recommends reforms for enhanced legal predictability.

Keywords

special purpose vehicles project finance bankruptcy remoteness post-Soviet legal systems transitional economies civil law challenges secured transactions creditor protections legal reforms Central Asia

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Published October 26, 2025

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