OREANDA-NEWS. June 16, 2011. A Memorandum on Strategic Partnership between State Company Russian Highways (Avtodor) and SOGAZ Insurance Group was signed in Moscow on Wednesday, 8 June 2011, by Sergey Kostin, Chairman of Avtodor’s Management Board, and Sergey Ivanov, Chairman of SOGAZ’s Management Board.

This document contains a wide list of joint activities focused on establishing an efficient insurance protection system for the interests of State Company Avtodor in implementation of its investment projects. Avtodor also intends to engage SOGAZ together with other insurance companies in the discussions on the issues related to insurance of its property and civil liability, and to participate jointly in initiation of legislation aimed at improving the insurance protection mechanism for concessionary agreements and investment projects within the framework of public-private partnership.

“SOGAZ has accumulated great experience in insuring federal and regional investment projects that, I am confident, will be useful for State Company Avtodor as one of the largest customers in capital construction”, noted Mr Kostin in his address. “We expect that partnership with SOGAZ and other insurers will strengthen the reliability of capital construction investment (and) promote higher profitability of the state company’s projects”.

Sergey Ivanov in turn expressed his hope that the signing of the Memorandum with State Company Avtodor will enable a wider use of insurance mechanisms in road construction. “We are ready to be actively involved in the implementation of an insurance policy adopted by State Company Avtodor providing together with other insurance companies protection of property interests of the public-private partnership in road construction. In the nearest future we will get down to the development of insurance standards that will take into account the specific features of Avtodor’s activities”, said Mr Ivanov.