Deputy Prime Minister Marat Khusnullin spoke about measures to reduce the cost of building materials
Marat Khusnullin. Photo: Sergey Kiselev / AGN “Moscow”
The Russian government has thought about a set of measures to reduce the cost of production of building materials. This was stated by Deputy Prime Minister Marat Khusnullin, RIA Novosti reports.
“Now we have agreed that we will nevertheless look at and propose comprehensive measures on how to reduce the cost of production of building materials,” Khusnullin said and stressed that several meetings were held on the issue. He noted the need to combat price increases in order to avoid a threat to public construction projects. Due to inflation and regulatory issues, the National Association of Infrastructure Companies (NAIC) has warned the Russian government of an impending catastrophe in the construction industry.
The Ministry of Construction also proposed introducing an aggregate index to determine the cost of construction work and adjust prices if the value of contracts increased by five percent or more. The index will include, among other things, the cost of construction resources. In addition, the Ministry of Construction proposes to provide in the law on the contract system a mechanism for adjusting the price of contracts if the index turns out to be inconsistent with actual inflation.
Earlier in December, it was reported about problems with projects of state construction projects associated with the rapid rise in prices for materials. According to Rosstat, in January-November 2021, the cost of building materials increased by 19.5 percent in annual terms. A joint study by NAIK and the Higher School of Economics revealed that almost half of the largest Russian road construction companies are under the threat of bankruptcy.
