• O. I. Vygovskyy Institute of International Relations at Taras Shevchenko National University of Kyiv


This article examines, classifies and categorizes various types of project risks inherent to international project finance and discusses legal techniques employed by the key participants of project finance to mitigate each of these risks based on thorough examination of project documentation typically elaborated for this purpose. It covers both commercial (internal and external) and non-commercial risks, in particular, completion risk, risk of excess expenditure, operational risk, environmental risk, risk of insufficient revenues, supply risk, currency risk, inflation risk, interest rate risk and others. The author argues that non-commercial risks, including political or country risks, present even greater peril for an international project and offers a complex of protective legal measures which could be used for diminishing such risks in the long run. The conclusions formulated at the end of the article present the author’s personal attitude towards legal solution of the problem of minimization of the project risks arising within international project finance.
Key words: project finance, project company, commercial risks, non-commercial risks, contractual remedies.

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Author Biography

O. I. Vygovskyy, Institute of International Relations at Taras Shevchenko National University of Kyiv

Doctor of Jurisprudence, Associate Professor of Law, Department of Private International Law,