New tariffs on Russian trucks could increase the cost of real estate by nearly 10 percent by making it more expensive to transport building materials, a construction industry body has warned.
In a letter to the Housing Ministry obtained by the RBC news agency on Thursday, an association of major Moscow region construction companies said decisions this year to lower the maximum weight of road freight and impose a duty on the use of highways would increase construction costs by 7-9 percent.
The letter warned that higher costs could lead to a slowdown in the construction sector, according to RBC. Russia is already mired in an economic slump, with output expected to contract by around 4 percent this year.
The new freight tariff system, which uses satellite tracking to monitor trucks' movement along federal highways and charges a per-kilometer fee, incited nationwide protests by truckers when it began last week.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
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 every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
