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MIL OSI Translation. Region: Russia –

Source: President of Russia – Kremlin

Vladimir Putin: Vladimir Vladimirovich, you were one of the participants in our long discussions about creating a new system for financing housing construction and construction in general. In the end, it was decided to finance the industry through banks, through escrow accounts. On this issue, there were significant concerns related to a possible slowdown in the construction sector. It is now possible, probably, to draw certain results. How does this system work, your assessment? V. Yakushev Vladimir Vladimirovich Yakushev Minister of Construction and Housing and Communal Services: Regarding certain results. Vladimir Vladimirovich, this is not the final statistics, but the data for today: the input for us in 2019 amounted to 80.3 million square meters. For the first time, we have overcome a falling trend since 2015. This is an indicator of the industry’s performance. With regard to the transition to escrow accounts. Naturally, there was a lot of discussion, but this is the only right way for us to protect the money of citizens. Today we note that the number of developers who already work with banks, switch to escrow accounts, receive project financing, is growing. For this year we created a system, in this system we clearly see every house today. Today, nine thousand and eight houses are being built at the expense of citizens’ money, either according to project financing through escrow accounts, or according to the old rules: 102.9 million square meters in this system. Of these, 26 million are already being built through escrow accounts, over the past two months, four million [square meters] of projects have already been transferred to the new system. As for projects that are built according to the old rules. You set the tough task that they should be completed as soon as possible and also go to project financing. For three months, 11 million [square meters] delivered. Today we have 64 million completed according to the old rules. We can say that these houses are being rented out quickly enough. Therefore, we can state that the system is effective, the decisions that are made are correct. The system formed today, from the point of view of legislation, is absolutely correct. Therefore, we need to continue work in this direction. Vladimir Putin: Good. How are work going on emergency housing? V. Yakushev: As for emergency housing, Vladimir Vladimirovich. We reported on December 25 at your Council [on strategic development and national projects] – on emergency housing – we exceeded the indicators for 2019 by almost six times. The indicators that we took as part of the national project are 140 thousand square meters, it turned out 800 thousand. This suggests that the subjects of the Russian Federation are actively moving in this direction. For 2020, we have an indicator of one million [square meters], we should grow almost ten times. Our joint work with the constituent entities of the Russian Federation, local self-government bodies (it depends on their work and the work of these teams how well we will implement this program; our main operator is the Fund for Assistance to the Reform of Housing and Communal Services) today says that the system checked in 2019. We are ready today to carry out more serious tasks: 2020, 2021 and until 2024 we must resettle more than one million square meters of [emergency] housing. I believe that here we will also fulfill the indicators that are laid down in our national project. We must fulfill these indicators by 2024 within the framework of your Decree No. 204 [dated May 7, 2018]. Vladimir Putin: Good.

MIL OSI

EDITOR’S NOTE: This article is a translation from Russian Language to English.

MIL Translation OSI