Ministry of Construction plans to compensate for the rise in prices for building materials

As the deputy head of the Ministry of Construction Sergey Muzychenko noted, “The Ministry of Construction, Housing and Utilities is preparing new proposals to compensate for the rise in prices for building materials in Russia. We have prepared amendments to the decree, which provides for an increase in prices for government contracts. As regards compensation for prices for building materials, we have not laid down the cancellation of the previously established date, but we understand that there is a need, and in the course of working out the changes we will move in this direction."

Earlier, the Russian government allowed the increase in prices of state contracts for construction, reconstruction and overhaul up to 30% to compensate for the rise in prices for building materials. This measure is possible for contracts worth 1 million rubles or more, which conclude before July 1, 2021. Currently, according to Muzychenko, in the event of a further rise in prices, it can be extended to contracts concluded after July 1, 2021.

Development Director of the construction company "Mega-Stroy-M" Sergei Molodov announced the beginning of the third wave of growth in prices for building materials. “Concrete is already growing by 3% per week, asphalt has risen in price by 25% in two months,” stated Molodov at the Knight Frank warehouse conference.

According to Rosstat, since the beginning of the year construction materials have grown in price by 26.3%, compared to August last year which was 30%. As Deputy Prime Minister of the Russian Federation Marat Khusnullin noted earlier, the increase in prices for materials is observed all over the world for objective reasons. In some regions of Russia, over the past year, an unjustified increase in the cost of certain goods has been recorded. The authorities are dealing with this problem. The Federal Antimonopoly Service recently announced the expansion of verification in the markets of building materials and the creation of a register of major manufacturers in the construction industry.