Igor Shuvalov: Rejection of shared construction is not planned in Russia

Complete rejection of shared construction is not planned in Russia. It was stated by First Deputy Prime Minister Igor Shuvalov, answering journalists' questions after a meeting on development of housing construction, which took place in Kazan. The meeting was attended by Acting President of Tatarstan Rustam Minnikhanov.

Shuvalov told about planned amendments to the Federal Law No.214 On Participation in Shared Construction of Apartment Buildings and Other Real Estate.

"There are more and more deceived investors due to the market decline. The law No.214 has certain shortcomings and gaps. These shortcomings must be eliminated," the first vice-premier of Russia emphasized.

He noted that the Russian Ministry of Construction had set up a special working group, which also includes representatives of the regional authorities.

Head of Tatarstan Ministry of Construction Irek Faizullin is also invited to participate in this work, according to Shuvalov.

Speaking on the proposed mechanisms for improving shared construction and straightening protection of shareholders interests, the first deputy prime minister said: "When the project is launched and its documentation is published, it is necessary to put the project under supervision of a financial (banking) institution, in order citizen’s money given for the constriction of a certain house were directed to this house. It sometimes happens that this money cover costs of another projects not completed before. Thus, we will not contribute to growth and building pyramid schemes. It is very dangerous now. "

According to Shuvalov, the amendments to the Federal Law No.214, which are to be developed, should meet integrity of builder and protect shareholders. The bill can be submitted to the Duma for consideration during the forthcoming autumn session.

Acting President of Tatarstan Rustam Minnikhanov said: "Shared building is a good activity, but the current situation is not clear. Those who want to get apartments, make an agreements, and then, when problems arise, they come to us. But we are limited on measures of support. Thus, I think that the law should be adjusted to create accountability and transparency of situation."

As acting President of Tatarstan noted, Tatarstan would present its proposals for consideration development of amendments to the federal law.