World Forum “New Era—New Ways” Signs Memorandum To Establish International Leasing Council, 20 August 2025

The World Forum “New Era—New Ways” featured an expert panel dedicated to developing international leasing as a tool for economic integration and technological modernisation.

Participants discussed regulatory, tax, and infrastructure challenges and presented initiatives for establishing cross-border cooperation mechanisms. Harmonising legislation and creating a single information space to stimulate cross-border leasing transactions was in the spotlight of the debates.dg

Leasing is becoming central to the agenda for technological renewal in Eurasian economies, including industrial renovation, export deals, and enhanced business operational efficiency. However, the lack of uniform procedures and coordination channels between countries continues to hinder cross-border projects. This was the focus of the International Leasing Panel held within the World Forum “New Era—New Ways” in Moscow.

Discussions, attended by professional leasing associations from Russia, Kazakhstan, Armenia, Kyrgyzstan, and Belarus, culminated in a proposal to establish the International Leasing Council.

said Yevgeny Tsarev, Co-Chair of the Council, Head of “Leasing Union,” Member of the Russian Chamber of Commerce and Industry Council on Financial, Industrial and Investment Policy, Deputy Chairman of the Russian CCI Subcommittee on Leasing.

The Council will be tackling a range of issues—from harmonising methodologies and facilitating information exchange to drafting model rules on jurisdiction, enforcement of court rulings, customs procedures, and tax regimes.

The existing legal framework has a foundation—the 1988/1995 UNIDROIT Ottawa Convention. Yet it does not address critical issues concerning taxation, VAT on cross-border supplies, mechanisms for repossessing leased assets in the event of default, and vehicle registration across different jurisdictions.

Without a superstructure built upon national legal systems, incorporating arbitration and mediation, international leasing will continue to stall, and companies will keep deferring transactions, as it has already been the case with major locomotive deliveries to Central Asia.

In a context where Russia and neighbouring countries face the substantial challenge of technological renewal, leasing can transform complex and capital-intensive renovation projects into manageable and executable ones, reducing entry barriers and accelerating the modernisation cycle.

emphasised Vladimir Gamza, Chairman of the Committee for Financial Markets and Credit Organisations at the Russian Chamber of Commerce and Industry.

The challenges of technological modernisation altogether are a fertile ground to develop leasing. According to Vladimir Gamza, Russia currently has approximately 600 million square metres of producing area, of which around 200 million square metres are already unsuitable for modernisation, and half is entirely unfit for industrial use.

noted Vladimir Gamza.

This picture is replicated across Eurasia: similar challenges are seen in Kazakhstan and Uzbekistan, as well as Kyrgyzstan. Yet we have unique integration tools: within the EAEU, a key rate subsidy is envisaged to launch relevant projects—leasing is poised to play a strategic role, converting financing into tangible capacities.

Renovation is not only abuilding building the new, but also about the industrially organised dismantling of the old. This includes processing large amounts of industrial waste: about 70 billion tonnes in Russia alone, with up to 30,000 tonnes per resident in the Murmansk region. This generates a whole range of leasing products: from specialised demolition and sorting machinery to mobile processing systems and environmental monitoring equipment. The leasing model enables the rapid deployment of equipment fleets, spreading capital expenditure over time and linking payments to production flows.

A second dimension involves the construction of new facilities and their provision as ready-made infrastructure via leasing. This is a natural extension of the policy shift towards an industrial-technological economy: around 50 federal projects within national initiatives relate directly to industrial renovation—effectively, this is Industrialisation 2.0, according to Vladimir Gamza. Taxonomy updates, along with revisions to public-private partnership legislation and technological policy, are creating a legal framework within which leasing can scale up cooperation and capitalisation across the entire Eurasian space.

International leasing currently has a low transaction base yet enormous development potential, according to Yevgeny Tsarev, Co-Chair of the Council, Head of “Leasing Union,” Member of the Russian Chamber of Commerce and Industry Council on Financial, Industrial and Investment Policy, Deputy Chairman of the Russian CCI Subcommittee on Leasing. In practice, the figures of actual cross-border transactions are modest, and in some sectors, they number only in the tens. This is the “low base” that hinders the achievement of practical experience from which uniform solutions emerge and enforcement mechanisms are refined.

The trouble spots are well-known: VAT on the supply and movement of assets, customs, the lack of interconnected registers for leased assets, opaque exemption procedures in the event of a lessee’s default, as well as insurance and coverage issues, which often prove to be the weak link in multi-jurisdictional transactions. A separate line item—currency risks. Whereas the US dollar was once the universal standard, Chinese yuan and Indian rupees are now increasingly common in international supply chains, meaning new currency pairs, new swap curves, and new hedging issues. For CFOs, this is not something abstract but a transaction cost that can erode margins even in priority real-sector projects.

said Yevgeny Tsarev.

Formally, a legal framework exists—the Ottawa Convention defines the basic relations between parties and establishes key principles. However, it has long failed to fully meet the realities of modern cross-border trade and cooperation.

The very essence of international leasing lies in its role as direct investment in machinery and equipment, rather than trade in financial derivatives. The ability to choose a jurisdiction, a more predictable judicial system, a convenient contract language, and insurers with relevant expertise—these are its competitive advantages. But they are only effective with a reliable mechanism for enforcing court rulings.

Yevgeny Tsarev believes that a multilateral agreement on the international financial market as it applies to leasing could serve as a superstructure over the Convention. This agreement would include model rules on jurisdiction (in the first, second, or third country), arbitration clauses, harmonisation of fundamental tax and customs approaches, and the creation of a single information space for data exchange between market participants and regulators.

This is not mere “paper architecture” but a roadmap to reduce transaction costs. Existing practice already points to the bottlenecks: cases involving rolling stock deliveries to Central Asia stumble over VAT calculation methodology and asset registration procedures, while opening branches in neighbouring countries invariably encounters disproportionate costs in time and capital. This is precisely why businesses are calling for predictability—whether through the harmonisation of civil codes or specialised arbitration panels within industry institutions.

The Armenian leasing market shows a combination of factors rare for the region: institutional maturity, aggregated demand from SMEs, and targeted yet effective state support. Consequently, the market portfolio has grown by half over the past year, with the total volume approaching the one-billion-dollar mark—a substantial figure for an economy of this scale. Arsen Bazikyan, Chairman of “Lessors’ Association of Armenia,” shared this information at the International Leasing Panel, held for the first time at the World Forum “New Era—New Ways” in Moscow on 20–21 August.

said Arsen Bazikyan.

Arsen Bazikyan lists the three pillars of this growth—subsidy programmes for agricultural machinery, industrial equipment, and business fixed-asset modernisation. A key indicator is the profitability and cost of funding for the end client: subsidised rates ranging from 2–4% make investments in machinery and equipment a viable undertaking for SMEs, which usually face barriers related to advance payments and access to long-term capital.

Armenia complements its financial framework with active market engagement. The Republican Exhibition at Meridian Expo attracts up to 150 brands of leasing equipment suppliers, while thematic events like the Medical Expo translate discussions about leasing into the language of specific industries. This is not merely a “trade fair” but a means of cultivating demand by showcasing solutions and services. Furthermore, media and education play a role—the launch of a leasing podcast as an educational and investment platform shows that the association is playing the long game, cutting information costs for businesses.

Bazikyan’s stance on international leasing is pragmatic—the geography of partnerships should not be subject to politics, and transaction infrastructure should not rely on chance. To this end, Armenia’s regulator, the Central Bank, provides the financial sector with a familiar supervisory framework, while the civil-law aspects of leasing remain governed by laws regulating rental relations. This is a holistic model that functions as long as clear rules for currency control, insurance, and accounting exist. However, scaling cross-border transactions will require an external superstructure—precisely the kind of interstate “layer” that ensures arbitration and enforceability. This is why the Armenian experience is valuable for regional platforms—competing funding sources, an active exhibition and educational ecosystem, subsidised rates, and work on a green taxonomy are tools that can be transferred and adapted.

The market is already endorsing this with figures—rapid portfolio growth, keen interest from international suppliers (from agricultural to industrial equipment), and the expansion of the product matrix from classic financial leasing to operational formats and service packages.

The Kazakh leasing market is among the most structured in the region. Two key industry platforms—a committee within the Association of Financiers and the “KazLeasing” association—set the pace for debate and standardisation. The market landscape is balanced, with quasi-state companies operating alongside independent players, including publicly listed issuers. A report on the development of leasing in Kazakhstan was presented by Aigul Tattybaeva, Chairperson of the Presidium of the Leasing Association of Kazakhstan, at the International Leasing Panel at the World Forum “New Era—New Ways.”

said Aigul Tattybaeva.

A key marker of maturity is the “duration” of the portfolio: 60% of transactions have terms longer than six years, enabling the financing of capital-intensive projects in transport, industry, and agriculture. Such deals call for stable funding sources, where linkage with the banking sector is crucial—around 70% of funds raised come from second-tier banks. This cuts the cost of funds but also imposes requirements for risk management, cross-default provisions, and covenants, which ultimately raises the quality of corporate governance among lessors.

Aigul Tattybaeva emphasised the role of SMEs, noting that 62% of the total volume are transactions within this segment, which traditionally faces capital shortages and is averse to large advance payments. In agriculture, global brands such as John Deere and Caterpillar participate in leasing programmes not merely for show; it provides essential service infrastructure. Without it, machinery quickly becomes mere “scrap metal.” Such players discipline the market, compelling an overall rise in service standards.

The market portfolio is measured in trillions of tenge, with current dynamics in 2025 indicating growth. This signifies that leasing in Kazakhstan is not a niche but a full-fledged channel for investment financing, facilitating the modernisation of key industries.

The next step involves scaling cross-border transactions and export leasing. Here, Kazakhstan encounters the same barriers as its neighbours: VAT for the movement of assets, vehicle registration, insurance coverage protocols, and jurisdictional issues.

Kyrgyzstan is currently one of the most dynamic leasing markets in the region. High economic growth rates coupled with significant depreciation of fixed assets create a rare combination: the demand for equipment renewal here is not theoretical but pressing. This was highlighted by Anton Vetoshkin, Deputy Chairman of the Board of the Russian-Kyrgyz Development Fund, at the International Leasing Panel at the World Forum “New Era—New Ways.”

said Anton Vetoshkin.

The Russian-Kyrgyz Development Fund already accounts for up to a third of the leasing market, directing over 25% of its own portfolio into renewable energy projects. This serves as a clear signal that the green agenda is moving beyond mere declarations and is being realised through funded assets backed by well-defined revenue streams. A base interest rate of around 9–10% does not appear prohibitive for leasing structures, particularly when factoring in gains in equipment productivity and operational cost savings.

Forecast estimates of market capacity, voiced during the discussion, indicate a potential range from 98 million dollars to nearly 400 million dollars over 5–7 years, depending on the reform scenario and its pace. The low base is not a drawback but an advantage: every improvement in the institutional environment yields a disproportionately strong effect on transaction growth.

In Kyrgyzstan, bank-affiliated leasing platforms dominate, while private initiatives are actively serving the retail automotive segment, which accounts for up to half the market. The Leasing Association of Kyrgyzstan, established in February 2025, is beginning to unite market players and standards. This is an opportunity to rapidly “leapfrog” several stages of industry development by adopting the best practices of neighbouring states in contractual frameworks, SME scoring, insurance coverage, and asset exemption and resale.

Initiatives to launch professional training programmes—such as MBA tracks in leasing—will help address the skills deficit currently hindering scaling. The industrialisation agenda is also relevant—plans for a joint leasing company involving the Russian-Kyrgyz Development Fund, along with localisation projects in the automotive industry (such as the AvtoVAZ plant operating under the local Muras brand), are generating demand for long-term capital, service infrastructure, and residual value insurance.

Aligning qualifications and state standards is not bureaucracy. It is an accelerator for entering the industry and a guarantee of quality for clients. The priority lies in digital leasing and areas not yet covered by standards. This was stated by Diana Mashtakeeva, a member of the Council for Professional Qualifications in the Financial Market and a member of the Board of the Russian Union of Industrialists and Entrepreneurs (RSPP), during the International Leasing Panel at the World Forum “New Era—New Ways,” held in Moscow on 20–21 August.

Leasing is maturing, and the required skill set is evolving alongside it. Whereas yesterday the core of the profession was contract law and basic credit analysis, today, without digital tools, telematics, data analytics, and product pipeline management, it is impossible to properly assess risk or retain a client over the asset’s lifecycle.

Diana Mashtakeeva accurately shows this shift—independent skills assessment, aligning professional standards with state norms, and educational programmes form a cross-cutting infrastructure that makes the market predictable. In 2017, NP “Leasing Union” laid an important foundation—before receiving a qualification, a specialist must complete advanced training on specialised programmes. The current task is to overhaul the content to reflect new realities: digital leasing, operational models, residual value management, ESG taxonomies, anti-fraud and cybersecurity, as well as cross-border specifics—VAT, customs, accounting, and arbitration.