The President of Tatarstan: The main task is to prevent a decrease in the pace of construction

The President of the Republic of Tatarstan, Rustam Minnikhanov, took part in a meeting on socio-economic support of the subjects of the Russian Federation via video link. The meeting was chaired by the President of the Russian Federation Vladimir Putin.

In his speech, Rustam Minnikhanov voiced a number of proposals to mitigate the impact of restrictive measures on the construction industry and housing and communal services. Recall that the President of Tatarstan heads the commission of the State Council for Construction, Housing and Communal Services and the urban environment. Below is the text of the speech by Rustam Minnikhanov:

"Dear Vladimir Vladimirovich! Dear colleagues! Our State Council Commission, representing the interests of the regions, organizes joint work with the Ministry of Construction of Russia and prompt resolution of emerging issues within the framework of the work of the headquarters under the leadership of Deputy Prime Minister of Russia Marat Shakirzyanovich Khusnullin. At this stage, our work is aimed at leveling the consequences of restrictive measures.

As a result of the joint work, the relevant federal laws were adopted. I would like to thank the Parliament and the Government of Russia for their prompt decision-making. These laws allow us to remove the most pressing issues, such as the possibility of changing project documentation without repeated examinations, simplification of the procedure for the preparation and approval of urban planning documentation. Our commission, together with the Russian Government, will continue to work to reduce excessive approvals and documents. A number of decisions on state contracts have also been made. In particular, for the prompt conclusion of state contracts, the possibility of a subject of the Russian Federation to make purchases from a single supplier is provided. I would ask you to make a similar decision on procurement for municipal needs.

In addition, a number of measures have been taken for project financing to avoid sanctions for late delivery of shared facilities. At the same time, the regions should strengthen monitoring of the construction of such facilities and prevent the appearance of deceived shareholders.

There is also a need for a decision on lending for the construction of commercial real estate. This will create new jobs, as well as ensure the development of territories.

I would like to thank you, dear Vladimir Vladimirovich, and the Government of the country for maintaining limits on national projects and large infrastructure facilities, including those implemented within the framework of the infrastructure menu. This will ensure demand for machine-building products, load the construction industry and other related industries and, most importantly, ensure the preservation of jobs.

Today there is an increase in the cost of prices for building materials. In this regard, it is necessary to ensure the purchase of building materials at current prices. We ask you to provide for the possibility of advancing the concluded contracts up to 80%. This money should be "dyed"; we know how to work with it. I think it will be a very serious support. For the effective use of the advance, we propose to revise the requirement for the need for bank guarantees under state contracts. We would also ask the Government of the country to organize centralized purchases of building materials under state contracts by analogy with the purchase of mineral fertilizers.

To implement major construction and road works, it is necessary to increase financial support for manufacturers of special equipment for their technological modernization. This will allow domestic companies to compete with global brands and increase technological sovereignty. We also propose to subsidize construction, road and utility organizations part of the costs of paying the initial payment for leasing domestic special equipment, and it is possible to allocate this equipment without a down payment.

According to the results of last year, a record volume of housing was introduced in the country. Tatarstan has also crossed the threshold of 3 million square meters for the first time. The key task for the current year is to maintain the pace of housing construction and ensure stable demand for it. In the context of an increase in the key rate of the Bank of Russia and the termination of the preferential mortgage-lending program, there is a risk of a decrease in the volume of housing sales in the primary market. I would like to note that preferential mortgages accounted for 67% of all mortgage loans in 2021. In this regard, we ask you to keep the preferential mortgage program and expand it in some positions.

Currently, the implementation of previously started projects continues. But for new projects that developers have not yet started, lending has been suspended. In this regard, we ask you to make a decision as soon as possible to subsidize the interest rate on loans within the framework of project financing of developers.

An important measure of support for vulnerable segments of the population was the decision of the Government of the Russian Federation to change the conditions for charging penalties for late payment of housing and communal services. At the same time, the regions need to ensure the control of payment discipline, both for the population and for legal entities. In order to curb tariffs, we propose to consider the possibility of subsidizing the interest rate on loans to finance their investment programs to resource-supplying organizations.

We monitor the situation on the cost of basic building materials and changes in the business climate in the industry on a daily basis. Our customers and designers are focused on the selection of analogues of equipment and materials included in the sanctions lists. The main task is to prevent a decrease in the pace of construction."