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21 Декабря 2017

Building Industry at Intersection between Growth and Stagnation

Building Industry at Intersection between Growth and Stagnation
Источник фото: Alexander Klimenko

Krasnodar, 21 December – Yug Times. At the traditional Christmas Summit held in Krasnodar on December 15, leading Russian and international experts discussed the situation at the regional construction market and prospects of regional development.

Speaking at the forum, General Director of the Territorial Planning Institute Anton Finogenov pointed out general interest zones in the development of large cities, including Krasnodar, for business circles, authorities and public activists. “What the business circles need is a consolidated position on the issue,” stressed Mr. Finogenov. “If we don’t formulate it, it will continue to be formulated from outside — at the Ministry of Construction and other governmental structures.”

As regards the infrastructural issues, Mr. Finogenov stressed that the developers in fact do not use in the formation of new legislative norms.

President of the Development Yug construction corporation Sergei Ivanov spoke about the problem of new tougher rules of work at the market. “Let’s rewind the situation to a year ago,” said he. “What was then can be called monkey tricks in comparison with today’s situation. And two years ago — we simply lived in a paradise and could care less!” He forecast that if the Federal Law No. 214 would not be amended in the near future in terms of softening the developers’ working conditions, the construction industry would find itself in dire straits. As many as 70% companies may leave the market.

The participants of the summit summarized that currently the construction industry is at the intersection between growth and stagnation — which is why it needs peculiar attention of the state. If there would be no changes in legislation, the industry may find itself in deep crisis.

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