federal obligations to defrauded shareholders are closed – Kommersant

Deputy Chairman of the Russian Government Marat Khusnullin said that all federal obligations to defrauded shareholders have been closed. He also called for the closure of obligations on the part of regional authorities.

“Despite the difficulties and lack of money, we even went so far as to take out loans and pay off shareholders. I ask the regional teams to fulfill their obligations too. Colleagues, let’s close the topic of shareholders. We have closed federal obligations,” Mr. Khusnullin said at a meeting with representatives of the regions (quote from “RIA News”).

All the money, according to Marat Khusnullin, will be paid within a few months. The Deputy Prime Minister added that by the end of this year the authorities will make a decision on restoring the rights of all citizens participating in shared construction.

In early December, Marat Khusnullin said that the Territorial Development Fund would pledge 6.9 billion rubles. to help defrauded investors. According to him, in total in Russia 1,669 people in 14 regions suffered from unscrupulous developers.

To protect shareholders during housing construction, the government introduced the mechanism of escrow accounts. Since 2019, developers have lost the opportunity to raise their money directly. Citizens’ funds invested for the purpose of purchasing housing are stored in escrow accounts in banks; construction is carried out using loans. Thus, developers can use buyers’ money only after the facility is put into operation. At the end of November 2023, the State Duma approved in the first reading a draft law on the use of escrow accounts in individual housing construction.

Read more in the Kommersant article. “Escrow is being integrated into the private sector”.

Petr Buzlaev