Easy as pie not to build castles in the sky / ASN-Info
At present, the Fund for Protecting the Rights of Participants in Shared-Equity Construction (the “Fund”) has a statutory right to complete protracted construction projects in order to resolve problems faced by affected participants in such shared-equity construction. The federal authorities have assessed the approximate total cost of the work to complete the construction of buildings, while the Russian Ministry of Construction has drawn up and submitted for discussion a Resolution of the Russian Government according to which certain problematic construction projects may be abandoned. As an alternative, the Fund will be vested with the right to pay monetary compensation to those who have been scammed. The draft Resolution only deals with the cases when a developer is bankrupt.
Arina Dovzhenko, the Head of the Real Estate & Construction Practice at Borenius Russia, shared with ASN-Info her opinion on the new developments which, in her view, will increase the transparency and predictability of the corresponding decisions of the Fund.