The rise in the cost of building materials increased the cost of unfinished construction by another 80 billion rubles

In Russia, more than 100 billion rubles of additional funding has already been allocated to complete the construction of capital facilities, but due to rising prices for building materials, this will require another 80 billion rubles by the end of the year, Deputy Prime Minister said in the Council for Strategic Development and National Projects Marat Khusnullin.

„We have fully worked out all revisions of the cost. To date, some of our issues have already been resolved for more than 100 billion in funding, we see another 80 billion increase in construction costs by the end of the year. (…) Until the end of the year, everything that is supposed to rise in price agreed to pay,” he said.

At this meeting, President Vladimir Putin recalled that at the end of 2021, it was decided to do everything to complete work at capital construction facilities, including additional funding for projects.

“We have fully formed a five-year program, which took into account everything that we will complete in three years, and everything that we will go on in the fourth or fifth year. Now we are figuring out the parameters of the Federal Targeted Investment Program, in just the next few days we will complete this work, and it will be clear how much money we have for the next five years and how much objects we will build. We hope to complete all 1,780 objects that we have in the Federal Targeted Investment Program as scheduled,” Khusnullin reported.

Prime Minister Mikhail Mishustin recalled that additional costs would be paid only after the projects were approved by Glavgosexpertiza.

Previously, Khusnullin advocated a strict time limit for budget construction projects. „If we take on an object, then it is impossible to build for more than three years. Very complex – a little longer. If there is no funding, it is impossible to start. This is our principled approach. This must be reflected in regulatory and legislative documents in order to minimize this risk for budget construction projects,” – said the deputy head of government.

It was also reported that the anti-crisis rules for the formation of a comprehensive program of capital investments for a period of five years were approved.

„The program will be taken into account when adopting the budget and it will indicate all planned construction projects for a three-year period with a forecast for the next two years,” the government’s website reported following a meeting of the presidium of the government commission for regional development.

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