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The Foundation of Sustainable Development: Construction and the Housing and Utilities Sector as the Basis for Economic Growth

16 June 2022
Фундамент устойчивого развития: строительство и ЖКХ как основа экономического роста

Key conclusions


The building industry has all the tools is needs to develop and niches for SME in import substitution, but it must go over to common standards, to efficiency, energy saving and accounting

“The main thing today is to maintain the current tempo. First of all, it is easier to save money; we need to retain the investments and construction in place at the moment. Investments under federal programmes are today being implemented in full. <…> [It is necessary – Ed.] to lower the barriers, which are still plentiful. <…> We know what needs to be done but the main thing is to do it fast: we have just signed an agreement with OPORA RUSSIA; small and medium-sized businesses have tremendous opportunities nowadays to enter the spheres of activity required and connected with substitution for technology from unfriendly states, to reset all their procedures. We have sufficient enterprises capable of fulfilling tasks and import substitution, we well as technological chains to be replaced,” Irek Fayzullin, Minister of Construction and Housing and Communal Services of the Russian Federation.

“It must be understood that the housing and utilities system is part of the economy. <…> Energy efficiency, saving and accounting are mechanisms we will develop not only in the utilities sector but also in overhauling, in construction, as that is the only way to improve quality and cut payments. Control over the state of the housing fund, meaning mandatory technical reporting and return to the BTI. <…> We support introduction of common standards for management and servicing of apartment buildings throughout the country, unified regulations, their unification, are important today and open up a broad field of opportunities. We also support establishing guarantee organizations for managing residential buildings and have launched the legislative work. The institute for licensing management companies is currently not effective in fulfilling its task,” Sergey Pakhomov, Chairman of the Committee of the State Duma of the Federal Assembly of the Russian Federation on Construction and Housing and Communal Services.

“The set of tools currently available to the Russian Government and developers is simply unprecedented. Today, it is hard to imagine any additional tool that could be needed. <…> Now the financial instruments must be made to work maximally effectively on territories. For this, developers themselves and municipal teams need to show initiative because it is not enough at the moment to have a tool available – it has to be used competently to have an effect,” Vladimir Yakushev, Presidential Plenipotentiary Envoy to the Urals Federal District.




Housing in the regions and rented housing are in short supply 

“We must be absolutely clear that 95% of housing is built on market conditions, using the people’s money. So our overall goal is accessible housing. This is achieved by a balance of supply and demand. If we boost only demand, we see that, in two years, there is 50% rise in prices while housing has become less available. 50% of housing, in some areas as much as 70%, is currently bought on a mortgage. <…> A transition to a normal housing policy is needed, to long-term programmes <…> We have a queue of 2.5 million people and we need to consider the issues of rented housing, subsidized rents, which we have started to introduce; we have started developing corporate rents,” Vitaly Mutko, Chief Executive Officer, DOM.RF.

“There should be a rate that encourages mortgaging. <…> There should be a programme for supporting those who will never take out a mortgage because they have no way of paying it back, so there must be a good housing certificate programme. <…> A very good programme for evacuating residential buildings that are in a dangerous condition, particularly involving not only purchasing existing properties but also building new ones to replace those demolished – this would be a solution to the social problem and a driver for the construction industry,” Alexander Drozdenko, Governor of Leningrad Region.


There has been a fall in new housing permits issued in the regions and insufficient attention is being paid to construction projects and replacement of lifts in a dangerous condition 

 “The number of projects companies currently have in progress, the quality they often produce, are not always good enough. And we, I believe, will also enter this field with a mechanism for regulation. <…> The functioning of the lift sector: by the end of 2025, we will have to replace 103 thousand obsolete lifts in the country,” Sergey Pakhomov, Chairman of the Committee of the State Duma of the Federal Assembly of the Russian Federation on Construction and Housing and Communal Services.

“We are seeing a certain drop in the number permits being issued for new housing and this concerns us; we understand that the main counter-crisis measure in housing construction is a reduction in mortgage rates and we are working on this. By lowering administrative barriers and providing expert support, we are giving our customers an opportunity to have their future projects transition more actively to construction,” Irek Fayzullin, Minister of Construction and Housing and Communal Services of the Russian Federation.




Establishing a federal precise and quality information system for construction, corporations developing a standard for implementing joint projects in the regions

“The railways link 860 cities where 100 million people live. <…> We are now developing standards, standards that can only be implemented together. We can provide recommendations for using territories for railways,” Oleg Belozerov, Chief Executive Officer – Chairman of the Executive Board, Russian Railways. 

“From 29 June, we are going over to paperless document management; we no longer receive paper documents from multi-functional centres, so two days at least are saved. <…> Today, it takes only 24 hours to register 84% of mortgages in the country – this is a vital indicator and a new challenge. <…> We have found 70 thousand hectares a year for housing construction, for individual home building, for apartment blocks. <…> By 2030, we will have found 200 thousand hectares and have resolved the problem with the database for development, not only for housing construction moreover. <…> A resolution has been signed on creating a unified digital platform – the National System for Spatial Data; this is a very important project, the digital profile of any territory, one where full, precise information can be rapidly obtained for management decision-making,” Oleg Skufinskiy, Head, The Federal Service for State Registration, Cadastre and Cartography (Rosreestr).

“Over the last six months, we have cut back as far as possible on all procedures. We can see a growth of CTD [comprehensive territorial development. – Ed.] as one of the most promising lines of work; we will continue working on its mechanisms, to raise their economic component. <…> The assignment issued by the President [of Russia Vladimir Putin – Ed.] under the programme for eliminating housing in a dangerous condition is our priority; we will fulfil this, too,” Sergey Pakhomov, Chairman of the Committee of the State Duma of the Federal Assembly of the Russian Federation on Construction and Housing and Communal Services.



For more details, see the Information and Analytical System.