The Ministry of Construction of Russia proposed the disclosure of escrow accounts after the commissioning of facilities
The Russian Ministry of Construction made a proposal on the disclosure of escrow accounts immediately after the developer received permission to put the facility into operation - before the first ownership of the facility for participation in shared construction was registered. This was stated by Minister of Construction, Housing and Communal Services of the Russian Federation Vladimir Yakushev during a plenary meeting of the Federation Council on June 17. “Our joint position with the Central Bank is as follows. At the moment, the system and banks are not ready for such a difficult issue, because it requires strict administration. This topic has been postponed for the medium term, but the amendments that are being prepared to the 214th Federal Law propose the following solution: you can transfer funds to the developer and open escrow accounts not after registering ownership, but immediately after the facility is put into operation. We believe that at this stage there are already no risks, and the developer will receive at least three months earlier his money that was invested in the implementation of a specific project, return project financing, and accordingly will cease to pay interest for it,” - said Vladimir Yakushev.