Support The Moscow Times!

Half of Russia's Regions to Miss Construction Targets

Half of Russia's regions are won't meet targets for housing construction due to a lack of building materials, a news report said Monday.

Russia needs more than 20 new cement factories, but companies are refusing to build new plants due to a lack of investment potential, Kommersant reported.

"It is better to modernize existing plants" said Mikhail Skorokhod, the president of Euro Cement Group Holding, which opened a new cement plant in Voronezh in November 2012 for 395 million euros.

The country also needs more than 30 enterprises for producing non-metallic materials and 15 for insulation materials, while about 200 existing cement factories need to be rebuilt, said Sergei Vakhrukov, the deputy regional development minister.

The state plans to build 0.45 square meters of new housing per year, but investment consultants SMPRO said that the figure is out of reach for most regions.

Vakhrukov said that the ministry is trying to stimulate production with particular focus on Siberia and the Far East, where subsidies on interest rates, tax rebates, and state guarantees will be made available.

In 2012, 65.7 million square meters of new housing were built compared to 62.3 million in 2011, according to the State Statistics Service.

Eventually, the authorities want at least 1 meter of housing to be built per person every year.

In 2012, 0.98 square meters per person were built in Moscow, the country's leading performer, compared to 0.8 square meters in Krasnodar region.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more