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Second meeting of State Council working group on developing construction sector and improving urban planning

February 15, 2016

Presidential Aide and State Council Secretary Igor Levitin chaired the second session of the working group to prepare the State Council meeting on developing the construction sector and improving urban planning in the Russian Federation.

Head of the State Council working group Governor of Krasnoyarsk Territory Viktor Tolokonsky presented the results of the work to prepare a report that will include priority strategic measures to improve and develop the construction sector and urban planning in Russia.

The working group analysed materials originating from Russian federal constituent entities, experts and professional communities, and formulated suggestions for developing the construction industry.

Participants in the meeting examined the main problems requiring priority resolution. It was noted that the legislative and regulatory framework in urban planning does not meet the needs for fostering growth in the volume of housing construction and comprehensive territorial development. Strategic planning documents in the sector are lacking.

A significant proportion of the enterprises producing goods that are essential for construction are lagging behind technologically. Depreciation of fixed assets within construction companies throughout the country overall is over 50 percent.

The meeting addressed problems related to low investment activity in the construction sector and monopoly status of certain construction companies, existing administrative barriers, inadequate technical regulations and the fact that construction regulations and rules are out of step with with international standards. The pricing system, which has been used since the 1990s, leads to higher prices and gives rise to corruption.

The working group examined measures aimed at stimulating demand in the construction sector, infrastructure provision, state regulation and self-regulation within the construction industry, import substitution for construction equipment and building materials, and staffing in the construction sector.

February 15, 2016