The Government of Russia wants to involve private investors in the construction of new prisons, in a bid to bring the lives of Russian inmates up to international standards. In light of lacking funds and in exchange for newly built prisons, authorities hope to offer private businesses urban lots for premium housing developments.

The Russia's Federal Penitentiary Service had announced previously that his agency was ready to use the experience of the UK, where private companies are actively involved in building new prisons. The agency said that specific decisions on this might be made as soon as the end of 2013.

The Russia's Federal Penitentiary Service proposals will require an amendment to the existing legislation, as it does not allow prison construction based on public-private partnerships.

According to official data, 697,500 inmates were held in Russia's penitentiary facilities as of February 1, 2013.