The Russian business newspaper RBC Daily in its latest issue also publishes critical statements from market participants regarding Sergei Aksenov’s unexpected moratorium on capital construction in Crimea for a period of 1 month.
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“A representative of the Consol company, having heard about the order, said that this is more like a canard, since these measures are illegal... The order signed by Aksenov came as a surprise to most builders in the region. Representatives of Crimean business, with whom RBC spoke, fear that freezing construction projects implemented with private money will lead to sharply negative consequences for the industry, investment and labor market,” the publication says.
“Everyone is in shock, all the developers - both local and those who came here from the “mainland” - do not understand what will happen next,” says a local businessman involved in construction.
Marketing director of the developer Greenwood (builds residential complexes in Simferopol) Irina Izotova told RBC that the issued order came as a surprise to her company - now the company is obliged to suspend construction work, although some of the housing has already been sold at the construction stage.
“Excited clients are calling, including from other Russian regions, since thirty percent of the real estate that we now have to suspend is for residents of the “mainland,” she says. “The workers are worried, everyone is perplexed: “What awaits us - indefinite vacations?...”
According to Izotova, the Crimean authorities called the construction industry “the driver of the region’s economic growth,” but the suspension of all construction, except for budget construction, is now the same as “breaking the stop valve of a train picking up speed.” Such a suspension could hit consumer confidence and lead to the freezing of “a huge number of jobs and investments.”