rcr bi-weekly no 5 (144) - 12-03-06 - free sample

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Russian Construction Review

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Published by PMR Publications

Issue No. 5 (144) – Tuesday, 6 March 2012Bi-weekly News Briefing

A prime source of market intelligence for construction professionals www.constructionrussia.com

Russian Construction Review

PMR Publications (www.pmrpublications.com) is a division of PMR, a British-American publishing, consulting and market research company. PMR Publications provides reliable market intelligence for business professionals interested in Central and Eastern European countries as well as other emerging markets. Publications by PMR analyse the business climate in the region, in particular in the construction, retail, IT, telecommunications and pharmaceutical sectors. PMR Publications offers both free and paid subscription newsletters, internet news portals and in-depth reports.

Industry news� page�2

Construction market

Russian real estate investment in 2012 to fall more than one-fifthInvestment in Moscow’s infrastructure in 2012 expected to exceed RUB 280bn

Look�inside�for�more�news�on�this�category�u

Contractors and developers

Sberbank sells stake in large general contracting holding in MoscowBelarus terminates Itera’s Minsk City construction contract


Building materials

Asphalt-concrete modification plant to be built in KrasnoyarskSoyuzstroy buys mobile asphalt-concrete plants from SPECO


Real estate

Seven land plots to be sold in MoscowThe Moscow National hotel may be re-sold for twice the price?


Planned investments

Residential and mixed-use

Hals to build upmarket housing on Moscow sparkling wine plant siteRBI to build residential housing in St. Petersburg’s Primorsky district


Non-residential

Two luxury hotel projects approved in MoscowMariott to build 20 hotels in Russia till 2015


Civil engineering

Israeli investors may build tunnel in Rostov-on-DonForeign investors encouraged to develop Taman port


In brief

Ukraine

Ukrainian parliament to permit privatisation of ports and facilitate investmentSevastopol authorities encourage Russia to invest $1.7bn in city projects


Market overview & statistics� page�10

Basic economic and construction industry indicatorsConstruction outputHousing constructionFederal subjects of Russia

Russian Construction Review – Issue No. 5 (144)Tuesday, 6 March 2012

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Companies in this issue:

A1� page�4Accor Group� page�7AFI Development� page�4Alpha Group� page�4Apart-otel� page�7Barcosta Ventures Ltd.� page�9Basic Element� page�7Belcom Communication� page�4BEL Development� page�7BGI Logistics AG� page�6Bosch� page�6Chernomorgidrozhelezobeton� page�9Coalco� page�3DB Development� page�4Dochki & Synochki� page�6DVMP� page�6Ekolog-Spomasz� page�9Eller+Eller� page�7Firma Park Kultury� page�8FM Logistic� page�6Gorodskie Teplosistemy� page�3Gorupravdom� page�3

GVA Sawyer� page�7GVSU Tsentr� page�3Hals Development� page�6IB-group� page�7IKEA� page�5InterContinental Group� page�8Itera� page�3JFC� page�5Kurskaya Ploshchad� page�4Lemminkainen� page�7M.Video� page�6Magnit� page�6Mariott� page�7Megalit� page�5MOITK� page�4Morgan Stanley Real Estate Fund� page�6Obyedinenie Stroiteley Sankt-Peterburga� page�3, 7Okhta Group� page�7Pios Ekoklar� page�9Razvitie� page�3RBI� page�6

Renova� page�8RIGroup� page�4RosEnergoMash� page�6Russian Corporation of Nano-technologies� page�8Shavrin and Godovalov� page�8Smart Finance Group� page�5Soyuzstroy� page�5SPECO� page�5Sportmaster� page�6Strabag� page�4Stroitelny Trest� page�7Stroyopttorg� page�6Studia TriTe� page�7SU-155� page�3Talion� page�5Tand� page�4Technopolis� page�7Transgarant� page�6Unikom� page�5Verny Kapital� page�5

Russian real estate investment in 2012 to fall more than one-fifthThe value of transactions in the Russian real estate market will make up $6.5bn (€4.9bn) in 2012, according to Jones Lang LaSalle. This is almost 23% less than a year earlier, when the total investment into Russian economy reached $8.4bn (€6.3bn) (which, in turn, was 73% higher than in 2010).

In 2011, transactions on the Russian real estate market involving foreign capital made up 41% of the total compared to 14% in 2010. A major portion of the funds was for commercial and office spaces. However, the source claims that the current year will see Russian investors regain their distinct domi-nation in this respect.

Investment in Moscow’s infrastructure in 2012 expected to exceed RUB 280bnMoscow authorities have announced that the city will invest more than RUB 280bn (€7.13bn) in the development and gentrifica-tion of the capital in 2012.

It is expected that RUB 70bn (€1.78bn) will be spent on the construction of 8.5 km of new underground railroads and three new metro stations. Another RUB 162.3bn (€4.13bn) will be spent on the construction of 48.8 km of roads, 17 bridges and overpass-es, and 50 pedestrian crossings. Besides, it is expected that 529,000 m² of residential spac-es will be brought into operation this year. In addition, 13 schools for more than 10,000 pupils, as well as 76 kindergartens, two out-

patient departments and two hospitals, are to be opened in 2012.

All construction to be banned from St. Petersburg historical centre The St. Petersburg governor Georgy Poltavchenko has announced that the city authorities intend to introduce a moratorium on any construction projects in the historical centre of the city. Although, according to the governor, there may be exceptions in special cases. Unfortunately, the city mayor has not given any details about the date of appropri-ate document disclosure.

The local development market players ex-press the opinion that the moratorium is more likely to result in the loss of historical monuments rather than providing them with protection. They say that this is because the city simply does not have enough resources to restore and maintain all the city’s historical buildings and attracting private investors is impossible without permitting them to adapt structures to modern usage.

Construction market

Industry news

Tuesday, 6 March 2012Russian Construction Review – Issue No. 5 (144)

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New residential housing permitted in St. Petersburg’s Frunzensky district The St. Petersburg authorities have ap-proved new planning of the territory in the Frunzensky district of the city cur-rently occupied by several industrial facili-ties. The new planning permits residential construction including social amenities on the sites of the Keramika, Stroyfarfor and AlyumoSistem-Monolitstroy plants. The site takes up 40 ha in total.

The city says that redevelopment of the area will improve the district’s ecological status.

St. Petersburg building materials producers to set up unionA building materials manufacturers union looks likely to be founded in St. Petersburg, according ASN-Info. The application for the creation of an SRO (self-regulatory or-ganisation) has been filed with the Russian Ministry of Justice. The Obyedinenie

Stroiteley Sankt-Peterburga (St. Petersburg Constructors Association), which already operates an SRO in the region, is believed to have made the application.

It is expected that around 100 companies from St. Petersburg (and its vicinities) pro-ducing building materials will join the un-ion by late 2012, with about 30 ready to do so today.

Manufacture of road-building equipment up 41% in Russia in 2011The production of road-building machin-ery in Russia increased by 41% year on year in volume terms in 2011, according to the Amiko consultancy.

Last year, among the road-building ma-chinery produced in Russia, the largest mar-ket share was taken by lorry-mounted cranes (35%), earth movers (16%) and excavating machines (10%).

In addition, concrete mixer trucks and earth movers (bulldozers) demonstrated the highest growth rate in the first three quarters

of 2011. The increase was 251% and 135% year on year respectively. Meanwhile, ex-cavating machines and loaders showed the worst growth rate – 7% and 3% year on year respectively – for the period in question.

Novosibirsk Province Territory to spend RUB 400m on planning projectThe Novosibirsk Province authorities are planning to announce a tender for the com-prehensive planning of the province’s terri-tory. The existing legislation stipulates that in the absence of such a document the local authorities will not be able to issue any con-struction permits after 1 January 2013. The province intends to invest RUB 400m (€10m) in the project.

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Sberbank sells stake in large general contracting holding in MoscowThe state-owned Sberbank is no longer in control of GVSU Tsentr, one of the largest Moscow contracting companies, according to Kommersant.

72% of the shares have been bought by the Razvitie management company, which is owned by Mikhail Cherkasov, a Russian businessman. The total cost of the company is expected to exceed RUB 6.9bn (€177m). Interestingly, local sources had previously predicted a stake of 74.5% in GVSU Tsentr.

GVSU Tsentr was founded in 1998. It con-trols a range of building material produc-tion facilities which once belonged to the Ministry of Defence and was heavily in-volved in the construction of social housing for the military. Sberbank obtained its stake in GVSU Tsentr two years ago in lieu of debt

repayment from the developer Coalco. At present, the company has orders for the con-struction of around 1 million m², with 70% of this commissioned by Moscow Council and Russia’s federal agencies.

Belarus terminates Itera’s Minsk City construction contract

Itera, a Russian development company, has lost a contract within one of the largest con-struction projects in Belarus – Minsk City – after the local authorities ended the co-operation between the parties, according to a report in Kommersant.

The contract was cancelled after Itera’s management approached the Belarusian au-thorities with doubts about Minsk City’s profitability. The construction of the Minsk City residential and business neighbour-hood was initially expected to make a profit

of $1.7bn (€1.3bn). However, Itera’s calcula-tions suggest that a reduction in demand for rental space in Minsk will lead to losses of $300m (€223m).

The project was started in 2007 and in-volves the construction of 3.5 million m² of residential, office, sales, and hotel property.

SU-155 continues getting rid of non-core assets

The developer SU-155 has sold its non-core asset, the company Gorupravdom, which manages 63 residential houses and two boiler plants in Odintsovo and Balashikha (Moscow Province) to the Gorodskie Teplosistemy, which constructs and manages heating sys-tems. The deal is in line with the recently adopted SU-155 strategy of selling off non-core assets.

According to informed sources, cited by Vedomosti, the deal may have reached as much as RUB 3bn (€75m), although the par-ties have not confirmed this information.

According to SU-155’s data, in 2011 the turnover of the SU-155 group of compa-

Contractors and developers


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nies amounted to RUB 78.7bn (€1.9bn), ex-cluding VAT. Simultaneously, the company invested RUB 44.7bn (€1.1bn) in building 1.3 million m² of residential and commercial property, mainly in Moscow Province.

A1 seeks to get Dva Kapitana business centre project

The A1 investment company – a subsidiary of the Alpha Group – is trying to get into the Dva Kapitana business centre construction project in Moscow Province. The company has signed agreements with DB Development and Strabag – the Russian subsidiary of the Austrian construction company – to team up for implementing the project.

As Russian Construction Review reported on a previous occasion, Strabag claims own-ership for the asset, since it is trying to get the centre as a repayment for the works done for the project. Additionally, the province also claims the centre. In turn, A1 intends to ar-range the settlement with Moscow Province.

Dva Kapitana was initially developed by now bankrupt RIGroup and later went to MOITK, owned by Moscow Province, which also ran into bankruptcy later.

The Dva Kapitana project is located in Myakininskaya Poyma district under Krasnogorsk town and in the neighbourhood of the future Moscow Province government office complex. The project is envisioned to be 96,000 m2 in total and is being developed on a 2.4 ha plot.

Kurskaya Ploshchad to get €23m for delayed project in MoscowThe company Kurskaya Ploshchad has won a lawsuit against the Moscow authorities af-ter the hotel project it was going to build in

the centre of the city had been delayed. The company owns 99% of the 60,400 m2 project, with the remainder belonging to the city. The project was supposed to be finalised in 2010 but the city extended the implementa-tion period until 2013. Kurskaya Ploshchad disagreed with the delay and filed a lawsuit. Later, the total claim had been increased sev-eral times. Eventually, the developer tried to get the city authorities to pay RUB 5.7bn (€143m) as lost profit, but eventually the court ruled that Kurskaya Ploshchad will get only RUB 906m (€23m).

AFI borrowed from VTB to pay for Afimall City car park

AFI Development has secured a RUB 4bn (€100m) loan from the VneshTorgBank (VTB) to purchase the underground car park at the Afimall City shopping centre in the Moscow City business centre from the Moscow Council. The buyout will be over three years with money to be paid to the city in approximately equal instalments. As a result of the transaction AFI’s total debt increased to €585m with loans from VneshTorgBank accounting for €427m.

Afimall City was opened one year ago and so far it has been generating negative cash in-flow which experts believe to be normal for the first year of a shopping centre’s operation. The asset has almost 180,000 m2 in total, with about 115,000 m2 of leasable area.

Moscow authorities expropriate site for construction of underground station

The Moscow authorities have expropriat-ed a 3.5 ha site in the south Moscow district

of Severnoye Butovo for the construction of the new Lesoparkovaya underground station on the Butovskaya metro line. According to rooffag.ru, the site was rented by the com-pany Tand, which intended to use it for the construction of a wholesale-retail centre, for the sale of alcoholic products, and a HGV car park. Tand will be reimbursed for the lost asset.

The new station is expected to open in 2013.

Kievskaya hotel project deadline moved

Belcom Communication has secured an extension of the deadline for the construc-tion of a new hotel complex on the site of the former Kievskaya hotel in Moscow, accord-ing to arendator.ru. The deadline has been moved until the end of 2014, and the devel-oper has not been fined for the delay.

The complex will consist of a hotel and of-fice areas, which will take up 32,000 m2 be-tween them.

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Asphalt-concrete modification plant to be built in Krasnoyarsk

The administration of the Krasnoyarsk Territory and Unikom, one of Russia’s larg-est asphalt-concrete modification producers, have signed a cooperation agreement pro-viding for the opening of a Unikom produc-tion plant in Krasnoyarsk, according to Radi Doma Pro. The territory’s authorities expect significant improvement in the local road system resulting from the cooperation with the company.

The company works in road construction and modernisation and widely uses special modifying agents for asphalt concrete. These agents consist of microparticles of rubber

made from used automobile tires which are then added to asphalt-concrete.

Soyuzstroy buys mobile asphalt-concrete plants from SPECOThe Soyuzstroy production association, one of the leading road building company in Russia’s Southern Federal District, has signed an agreement with SPECO, a South Korean leader in asphalt-concrete plant production, reports B2blogger.com. The Russian company will buy mobile asphalt-concrete plants from SPECO, and the deal is reported to cost RUB 38m (€974,000).

Soyuzstroy constructs roads, highways, in-frastructure facilities, and bridges as well as carrying out road repairs. It also produces asphalt-concrete.

IKEA may build factory in Nizhny Novgorod

IKEA, the Swedish furniture and house-keeping goods retailer, is considering build-ing of one of its manufacturing plants in the Semenovsky district of Nizhny Novgorod Province. The company is currently in talks with the provincial authorities. If the deci-sion to construct the plant is taken, IKEA would invest RUB 1.5bn (€38.5m) in the project. The factory is to process wood and produce chipboard and veneer sheets.

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Seven land plots to be sold in Moscow

The Moscow Land Resources Department is to auction off seven land plots in the city. The sites are located in the eastern, western, south western and Zelenogradsky districts. They are zoned for the construction of com-mercial and retail real estate, gas stations, and car parks.

Four of the aforementioned seven are in Moscow’s Eastern administrative dis-trict and are located on Dmitrievskogo, Krasnobogatyrskaya, Lukhmanovskaya and Suzdalskaya streets. The other ones are on Akademika Anokhina and Skobelevskaya streets in the Savelki district.

The Moscow National hotel may be re-sold for twice the price?The company Smart Finance Group, which has recently become the owner of the National (Natsional) hotel in the centre of Moscow, has allegedly received an offer to sell the asset at more than twice the price it was bought for,

according to Vedomosti. The offer amounted to $350m (€260m) and is coming from the company Verny Kapital, which informed sources associate with the Kazakh official and businessman Bulat Utemuratov. Neither Verny Kapital nor Smart Finance confirm the offer. The city authorities are surprised by the situation, and they say that Verny Kapital got the tender documentation for the hotel but did not participate in the auction.

As Russian Construction Review reported, Smart Finance won the auction organised by the Moscow council in January and got the 21,530 m2 hotel for RUB 4.67bn (€119m), which is located opposite to the Kremlin and equipped by the Russian tsars’ family interior decorations.

Luxury hotel in St. Petersburg to be sold

The owners of the 89-room Taleon Imperial Hotel in the centre of St. Petersburg have offered the asset for sale at a price of RUB 14.7bn (€377m). The owner is Talion, which is controlled by Aleksandr Yebralidze, a Russian businessman. According to aren-

dator.ru, Mr Yebralidze has announced plans to sell the asset in autumn 2011, stating, at the time, that the final price will be no less than RUB 12bn (€307m). However, some on the local market believe that the current RUB 14.7bn price is excessive.

The hotel is situated at the junction of the Nevsky Avenue and the Moyka Embankment, which is the historical centre of the city. The building itself was built in the late 18th century.

Rechnaya hotel in St. Petersburg sold

The Rechnaya hotel in St. Petersburg has been sold to the company Megalit. The vendor is the Russian businessman Vladimir Kekhman – the majority co-owner of the largest Russian fruit importer, JFC, which has been recent-ly experiencing financial problems and has applied for voluntary winding up. The asset may have cost the new owner €31m. Megalit intends to demolish the hotel and to use the site for residential construction. According to arendator.ru, the demolition work could cost RUB 25-30m (€640,000-770,000).

Megalit is a Russian corporation and has operated for about 20 years, mainly in mul-ti-storey residential construction. However, the company’s portfolio also contains the

Real estate

Building materials


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Okhtinskaya dolina settlement of cottages in the Vsevolzhsky district of the Leningrad Province.

Moskva department store got new major creditor

The Moskva department store in the centre of Moscow has got a new creditor after its €24.5m debt to the Latvian Parex Bank was bought by entities which are said to be con-nected to the local businessman Vladimir Polikhata, president of the RosEnergoMash group manufacturing equipment for energy producing industry. The debts were acquired for €27.8m.

The 22,000 m2 department store, locat-ed on the Leninsky Avenue, was recently working with interruptions resulting from the shareholders conflict and has eventually been declared bankrupt. It has gone into the external administration as a result of a law-suit from one of the smaller creditors – pri-vate individual Larisa Zharekhina – whose claim amounted to RUB 19m (€480,000).

The total debt of the department store amounts to RUB 1.3bn (€33m) – acquiring the majority of the debt potentially allows the new creditor to control the liquidation proc-ess. However, in order to control the asset, the new owner will either have to buy out the

claims of the other creditors or wait until the store is auctioned out. The payoff period for the store’s debts is scheduled for March 2013. Experts value the asset at $60m (€44.6m).

Bosch opens new warehouse in Novosibirsk

The German Bosch has put into operation its new 4,000 m² warehouse in Novosibirsk, ac-cording to Kommersant. The new warehouse space will be used for the storage of electri-cal appliances made by the German manu-facturer. The new warehouse will be operated by FM Logistic, a French logistic services provider.

Bosch has previously transported all its goods to the various regions of Russia from its Moscow warehouse. Thus, after open-ing its new warehouse in Siberia, the com-pany expects to reduce delivery times to the Eastern parts of Russia.

Sea Shipping Lines acquires logistics complex in KhabarovskThe company DVMP (Dalnevostochnoye Morskoye Parokhodstvo – Far East Sea

Shipping Lines) is to acquire 100% of Stroyopttorg, which owns a 20,000 m2 lo-gistics facility in Khabarovsk. The two main vendors are Transgarant (a 74.99% stake) and BGI Logistics AG (23.94%). The asset, located on a 9.2 ha site in the centre of the city, is one of the largest facilities for car-go transported by rail, motorway and river. Permission to consolidate the shares has been already granted to the DVMP by Russia’s Federal Antimonopoly Service (FAS).

Sever mall in Orenburg launches third stage

The third stage of construction for the Sever shopping mall in Orenburg has finished and the new premises were launched on 18 February 2012. The anchor tenants in the third stage are a Magnit grocery hypermar-ket and a Dochki & Synochki maternity and baby goods store.

The total area of the mall is 52,000 m2, with 35,500 m2 of trading space. The start of fourth (and last) construction stage, which will add 11,000 m2, is planned for Q3 2012. This part will house Sportmaster and M.Video stores, as well as a multiplex cinema.

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Residential and mixed-use

Hals to build upmarket housing on Moscow sparkling wine plant siteThe developer Hals Development (former Sistema Hals) is to build an upmarket resi-dential complex in the centre of Moscow on the site of the Kornet sparkling wines plant located on Sadovnicheskaya Street. The com-plex will take up 54,300 m2 of low and middle rise housing. The plant belongs to the devel-oper’s majority shareholder – VneshTorgBank

– which got it and other assets with the Bank of Moscow after the latter’s former top-man-agers were prosecuted for fraud. Experts val-ue potential investments in the project at €92-115m without the cost of relocating the existing production facilities.

The plant’s production facilities will be re-located soon. In addition, the site hosts sev-eral protected architectural monuments.

The project will become the second up-market housing development for Hals Development, the construction of the first, taking up 67,300 m2, has recently been ap-proved on another former industrial site on Lva Tolstogo Street in the Khamovniki district.

RBI to build residential housing in St. Petersburg’s Primorsky districtThe RBI holding has acquired 15 ha in the Primorsky district of St. Petersburg where it intends to develop 200,000 m2 of residen-tial properties, social amenities and com-mercial real estate. Experts value the plot, which was acquired from individual own-ers, at €12-13m. According to the compa-ny, construction works are to begin within two years.

The holding has been active in St. Petersburg since 1993. It specialises mainly in residential construction. The majority stake belongs to local business-man Eduard Tiktinsky while 24.99% is controlled by Morgan Stanley Real Estate Fund.

Planned investments


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Yet another residential complex to be built on Vasilyevsky island (St. Petersburg)

A residential complex is to appear on the site of the former iron rolling plant on Vasilyevsky island in St. Petersburg. The plant’s owners, who still control the site, in-tend to develop the project in co-operation with the Finnish developer Lemminkainen. The complex will take up 140,000 m2 and is estimated to need $350-450m (€260-335m) in investments.

The plant stopped production in 2006, and since then its owners are planning the new development.

Stroitelny Trest acquires land in St. Petersburg

The company Stroitelny Trest has acquired two sites, taking up 6 ha in total, in the Vyborgsky district of St. Petersburg, accord-ing to Kommersant. The company will use the land for the construction of 150,000 m2 of various properties. The vendor has not been identified, but the sites are thought to be worth RUB 2-2.2bn (€50-55m).

The Stroitelny Trest was founded in 1992 and is a member of the self-regulating organi-sation (SRO) Obyedinenie Stroiteley Sankt-Peterburga (St. Petersburg Association of Construction firms). The company claims that its joint portfolio contains more than 1.8 million m2 of developments.

Okhta Group to launch construction of mixed-use centre in PetrozavodskThe Okhta Group is to launch the con-struction of a 77,000 m2 mixed-use cen-tre in Petrozavodsk, in the Republic of Karelia. The centre will be a part a rede-velopment project on the site of the former Aleksandrovsky tractor plant, involving the construction of various residential and commercial properties on a 21 ha land plot. The mixed-use centre will feature re-tail space, cultural and leisure facilities and will open by the end of 2014.

The group is active in the North West of Russia, and is involved in both the commer-cial and residential construction sectors. The

total volume of properties put into operation amounts to 300,000 m2.

As Russian Construction Review previ-ously reported, the concept of the centre was worked out by German architecture firm Eller+Eller. Also, Okhta signed an agree-ment with IB-group company over the bro-kerage of areas in the future centre.

Non-residential

Two luxury hotel projects approved in Moscow

The present Moscow authorities have con-firmed two luxury hotel projects approved by the previous city administration. The first is a 14,400 m2 hotel at the Pushkinskaya Square on the site of the former office of the Moskovskie Novosti daily newspaper. The project was launched by the owners of the newspaper and later acquired by the com-pany BEL Development affiliated with the Basic Element holding (Bazel) belonging to the local tycoon Oleg Deripaska.

The other development is a hotel project near Patriarshie ponds on the Maly Kozikhinsky Lane and it is also to be devel-oped by BEL, while the investor Studia TriTe is affiliated with local famous actor and pro-ducer Nikita Mikhalkov. Oleg Deripaska maintains that his holding does not con-trol BEL any more, although some informed sources, cited by Rbc Daily, still connect him to the company.

Mariott to build 20 hotels in Russia till 2015

Mariott worldwide hotel network intends to open 20 new hotels in Russia by 2015. In 2012, the construction will be launched in Nizhny Novgorod, Omsk and Kemerovo. The com-pany will implement the project along with the Russian Transstroybank, owned by the Russian businessman Petr Chitilakhovyan.

The total investment is not disclosed, but the newest addition to the Marriot chain in Russia – the 208 room Courtyard by Marriott in Irkutsk – cost €45m.

According to arendator.ru, other cit-ies where Marriot hotels are also to be de-veloped in the future are Krasnoyarsk, Krasnodar and Sochi. However, this would be in cooperation with investors other than Transstroybank.

Hotel complex by Accor Group to be developed in Kaluga

The French Accor Group is to invest in and manage a complex consisting of an 160-room Ibis hotel and 130-apartment Adagio apart hotel in Kaluga. The whole complex will take up 18,000 m2 and cost about $38m (€28.3m). The developer of the project is GVA Sawyer. In addition, the complex will consist the first hotel asset under the Adagio brand in Russia.

According to sadz.info, the project itself is owned by Apart-otel company. Construction on the site are to begin in 2-3 months and are planned to take some 10 months. As the source informs, the complex will also have a 120-seat restaurant and some commercial spaces.

EBRD to grant €25m loan for science park in St. Petersburg

The Board of Directors of the European Bank for Reconstruction and Development (EBRD) intends to grant Technopolis, a Finnish construction company, a €24.7m loan for the construction of the second stage of a science park in St. Petersburg, according to arendator.ru.

The total cost of this stage will be €49.3m. The park will take up more than 20,000 m², including 18,700 m² of office space.

Lemminkainen, a Finnish developer, is the prime contractor of the project. The first sec-tion of the science park was activated in the vicinity of Pulkovo airport in March 2010 and cost €52m.

Second stage of Moscow’s Mitino shopping centre to open in MayThe second stage of the Mitino shopping cen-tre in north-west Moscow will open in May this year, according to lenta.ru. The centre is close to a metro station bearing the same name. The second stage of the shopping centre will contain stores, a restaurant and offices.

Meanwhile, the owner of the centre is plan-ning to redesign the first stage of the build-ing and to complete the work in September this year.


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The 10,000 m2 asset is located at the junc-tion of Mitinskaya Street and Dubravnaya Street and opened in 2001.

Civil engineering

Israeli investors may build tunnel in Rostov-on-Don

Israeli investors are considering the con-struction of the Northern Tunnel in Rostov-on-Don, according to Interfax. The project could cost RUB 7.5bn (€192m).

This will be a toll road which will connect the central part of the city with the northern residential area. The tunnel will eventually span 2.5 km, and its load bearing capacity will reach 60,000 vehicles per day.

The construction of the tunnel is expected to take six years.

Foreign investors encouraged to develop Taman port

Russia’s Ministry of Transport is considering the possibility of encouraging foreign inves-tors to build and manage the port in Taman, in the Krasnodar Territory, according to Vedomosti.

The companies which operate the ports of Rotterdam, Amsterdam and Hamburg are currently being considered as potential man-aging companies for the port.

According to experts quoted by the same source, there is a 50-60 million tonne port capacity deficit in southern Russia.

First Russian diesel-solar power plant to be built in St. PetersburgThe Renova group of companies, a large Russian conglomerate, the Russian Corporation of Nano-technologies, and the Ioffe Institute of the Russian Academy of Sciences will develop the first Russian diesel-solar power plant, according to ktostroit.ru.

The capacity of the pilot hybrid pow-er plant will be 100 kW. It is planned to use such power plants in the south of Russia, the south-eastern part of Siberia, the Republic of Yakutia, Zabaykalye, and the Far East.

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The company Firma Park Kultury has got permission to ex-tend a deadline for the construction of an exhibition centre on Bolshoy Chudov Lane in the centre of Moscow till �0 June 201�. The 2,600 m2 asset, with a 90-lot underground car park, should have been completed in 2009. The developer has not been fined for the delay.

The retail area of the Nizhny Novgord railway terminal is to be ex-panded from 1,000 m2 to 1,600 m2. The station will contain a su-permarket and other retail facilities.

InterContinental Group (IGH) is to open a second hotel in Russia. It will be located in St. Petersburg. The first one opened re-cently in Moscow. The new hotel will be located in the centre of St. Petersburg and feature 159 rooms, 1� luxury suites and a presi-dential suite. The hotel is planned to be opened in 2016.

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The company Shavrin and Godovalov intends to borrow RUB 200m (€5m) from VneshTorgBank (VTB) for the construc-tion of a warehouse in Perm. It has already borrowed RUB 100m (€2.5m) from the same bank and owns several logistics facilities in Perm, Tyumen and Moscow.

A logistics complex for Belorussian merchandise is to be built on the border of the Novgorod and Leningrad Provinces. The com-plex will have a capacity of 150,000 tonnes of goods. The con-struction work is to start in March this year, but no other details have been disclosed.

The construction of three new waste burning plants could begin in Kiev in 201�, according to building.ua. The city administration is currently producing a feasibility report and considering land sites for the future plants.

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In brief


9

Ukrainian parliament to permit privatisation of ports and facilitate investmentThe Ukrainian parliament has adopted a bill on the country’s seaports at its first reading, according to building.ua. The bill extends the protection of investors and facilitates the work of those eligible to work at Ukrainian ports.

The newly adopted bill stipulates that the government has controlling functions only and that port infrastructure activities are now at the disposal of private companies.

The main rationale of the new bill is to fa-cilitate the work of investors and to establish public-private partnerships in ports.

It secures the legitimacy of the work of ma-rine terminals which are remote from the main port area and improves the port re-structuring and privatisation mechanism.

Sevastopol authorities encourage Russia to invest $1.7bn in city projectsThe Sevastopol authorities have suggested that Russia should invest in the territories leased but not used by the Russian Black Sea Fleet, according to building.ua.

Ukrainian officials claim that Russians will be given priority in investing in six strategic projects, including the construction of resi-dential and hotel complexes, a yacht marina, shipyards, an airfield and a recreation centre.

The anticipated volume of investment in the projects, on 749 ha of the fleet’s land, ex-ceeds $1.7bn (€1.3bn).

Cypriot company to acquire Odessa concrete products plantBarcosta Ventures Ltd., a Cypriot invest-ment company, intends to purchase 48.5% of the issued share capital of Chernomor-gidrozhelezobeton, an Odessa-based concrete products plant, according to building.ua. The plant currently produces precast concrete units.

Two Polish companies to rebuild water purification facilities in Ivano-FrankivskThe Polish companies Ekolog-Spomasz and Pios Ekoklar have won a tender for the reconstruction of the Ivano-Frankivsk

sewage treatment facilities, according to Interfax.

The total cost of the project is €5.1m, ex-cluding VAT. The work is expected to be completed in full by 31 December 2012.

The World Bank will lend $150m (€111m) to the Ministry of Housing and Public Utilities of Ukraine for the reconstruction of water supply systems in several of the coun-try’s cities.

Kharkiv authorities seek investors for new waste management plantA municipal solid waste recycling plant will be constructed in Kharkiv by 2015, accord-ing to building.ua.

The plant will occupy 83 ha of land and will cost around €25m.

The authorities are currently seeking inves-tors who could participate in the project. It is expected to use Slovenian techniques and ex-pertise in the construction of the new plant.

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Ukraine

A D V E R T I S I N G

http://www.pmrpublications.com/product/Construction-sector-Ukraine-2012


10

Basic economic and construction industry indicators

www.pmrpublications.comSource: Rosstat, 2012

Inflation in building materials in Russia (y-o-y), January 2011-January 2012

5.1% 5.6% 6.1% 6.7%7.4% 7.8% 8.3% 8.5% 8.5% 8.3% 8.0% 7.9%

Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11

7.6%

Jan 12

Co 8 11nstruction output and main macroeconomic indicators, 200 -20

www.pmrpublications.comNote: changes in the table presented in real terms.* preliminary data of RosstatSource: Rosstat, CBR, 2012

2008 2009 2010 Latest 2011RUB bn 4,528.1 3,998.3 4,206.1 Jan 2012 234.7

€ bn 124.4 98.0 104.4 Jan 2012 5.8Construction outputy-o-y 12.8% -13.2% -0.6% Jan 2012 11.7%

GDPGDP at current prices € bn 1,144.4 879.5 1,115.1 Q1-Q4 1,330.3*Real GDP change y-o-y 5.6% -7.8% 4.0% Q1-Q4 4.3%*GDP componentsHousehold consumption y-o-y 10.7% -4.8% 3.0% Q1-Q4 6.4%*Gross fixed capital formation y-o-y 10.6% -14.4% 6.1% Q1-Q4 6.0%*Gross value addedManufacturing y-o-y 0.2% -14.9% 12.3% Q1-Q4 6.1%*Construction y-o-y 11.9% -14.6% -0.7% Q1-Q4 4.8%*Real estate, renting, business activities y-o-y 13.6% -7.2% -1.2% Q1-Q4 2.6%*OutputIndustrial output y-o-y 2.1% -9.3% 8.2% Jan 2012 3.8%Foreign tradeExports $ bn 471.6 304.0 400.0 Jan-Dec 522.0Imports $ bn 291.9 191.9 248.4 Jan-Dec 323.2Balance $ bn 179.7 112.1 151.6 Jan-Dec 198.8PricesCPI y-o-y 13.3% 8.8% 8.8% Jan 2012 4.2%PPI y-o-y -7.0% 13.9% 16.7% Jan 2012 8.4%Unemployment (by LFS) eop 7.7% 8.2% 7.5% Jan 2012 6.6%SalariesGross monthly salaries € 473.0 426.0 525.9 Jan 2012 576.7Real change in gross monthly salaries y-o-y 10.3% -2.8% 4.2% Jan 2012 9.0%Foreign direct investment $ bn 75.0 36.5 43.3 Jan-Dec 38.1Exchange rates€/RUB average 36.4 44.1 40.3 Jan 2012 40.7$/RUB average 24.8 31.7 30.4 Jan 2012 31.5

www.pmrpublications.com

Note: Since January 2010 Rosstat has introduced a new system for classifying productionwhich is harmonisedwith the Statistical Classification of Products by Activity in the European Economic Community (CPA),and for this reason data on the production of bricks and ceramic roofing tiles in 2009 is not in lineand can not be compared with the data provided since the beginning of 2010.Source: Rosstat, 2012

Production of basic building materials, 2010-20122010 2011 January 2012

Types of building materials UnitVolume Volume Y-o-y change Volume Y-o-y change

Cement million tons 50.4 15.4% 56.1 11.4% 2.7 26.4%Bricks billion standardised bricks 5.0 6.4% 6.1 17.2% 0.4 23.4%Ceramic floor tiles million m2 70.0 7.3% 77.6 18.5% 6.6 20.7%Ferroconcrete production million m3 20.3 15.3% 22.9 11.2% 1.5 18.8%

Y-o-y change

Market overview & statistics


11

Construction outputConstruction output in Russia (%, y-o-y),January 2010-January 2012


-13.6 -12.8

-8.2-5.5 -5.0

-0.3

-5.6

0.02.0 2.9

-1.0

11.6

-1.10.4

4.2

-1.9

1.9 2.5

17.6

12.4

16.5

8.25.9 6.711.7

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 2011 2012

Source: Rosstat, 2012

Construction ouput in Russia inJanuary (RUB bn),2010-2012

169.3 192.3 234.7

Jan 2010 Jan 20110 Jan 2012

Change in construction output*in Russia in January (y-o-y),2010-2012

* in real terms


-13.6%

-1.1%11.7%

Jan 2010 Jan 2011 Jan 2012

www.pmrpublications.com

Note: the 'backlog of orders' figures indicate the number of months for which Russian construction companiesare assured work based solely on the volume of contracts concluded by them as of the 1 of the month.For example, in February 2009 the backlog of orders was 3.6, which means that the total volume of contractsconcluded by construction companies as of 1 February 2009 allowed them to continue doing business(assured them work) for another 3.6 months, assuming the January 2009 capacity utilisation rate.Source: Rosstat, 2012

st

Value of construction work contracts signed Backlog of orders

Value of construction work orders signed and other constructionorders (RUB bn) and backlog of orders in the Russian constructionindustry (months), January 2011-January 2012

245.6

303.1 313.1337.9 343.2 332.7 309.7 307.3 307.6 288.4 302.5

255.0 264.3

1.0

3.53.2

2.6 2.5 2.3

1.7 1.6 1.61.3 1.4 1.2

0.9

Jan11

Feb11

Mar

11

Apr1

1

May

11

Jun11

Jul1

1

Aug11

Sep11

Oct

11

Nov

11

Dec

11

Jan12

Regional comparison of construction industry performancein CIS countries, 2010-2012

www.pmrpublications.comSource: Rosstat, State Statistics Committee of Ukraine, National Statistics Committee of Belarus,Statistics Agency of Kazakhstan, 2012

Methodology notes on statistics in Russian�Construction�Review

Construction output

The value of construction output is under-stood as the monetary value of construction work carried out by construction compa-nies based on construction contracts which are assessed and summarised by the Russian Federal State Statistics Service (Rosstat). Any changes in Rosstat data are immediately re-flected in Russian�Construction�Review. The updates may also refer to historical data.

Changes in construction output

The percentage changes in construction output are presented in real terms, which means that changes in construction prices have been factored in.


12

Construction output in federal subjects of Russian Federation, 2009-20112009 2010 January-December 2011

RUB million Change (%, y-o-y) RUB million Change (%, y-o-y) RUB million Change (%, y-o-y)Russian Federation, total 3,869,074.1 -16.0 4,206,100.0 -0.6 5,061,800.0 5.1Central Federal District 1,023,423.5 -17.1 1,093,587.3 1.9 1,236,396.9 -0.6Belgorod Province 27,154.0 -30.2 36,263.1 11.7 59,839.0 54.4Bryansk Province 11,494.7 -1.4 13,476.7 7.2 16,886.2 0.2Vladimir Province 20,078.3 -2.7 21,308.9 4.6 23,516.8 2.2Voronezh Province 26,539.5 -3.0 22,796.3 -1.8 28,525.4 10.8Ivanovsk Province 15,007.8 27.1 12,800.8 -22.9 16,221.5 9.4Kaluga Province 22,378.8 -15.5 26,812.4 7.6 33,775.3 18.1Kostroma Province 4,309.6 -28.2 8,064.8 -1.7 9,157.4 -14.7Kursk Province 19,163.1 -12.1 24,127.4 21.9 25,911.2 3.2Lipetsk Province 23,073.5 1.0 21,927.1 -14.3 28,507.1 0.5Moscow Province 211,544.1 -24.5 232,256.1 8.9 282,988.4 -1.2Oryol Province 6,745.7 -34.2 7,669.6 -7.2 9,248.4 5.2Ryazan Province 18,341.0 -33.6 23,080.0 14.4 31,993.5 0.1Smolensk Province 15,609.3 -9.4 19,341.4 7.2 25,566.2 1.1Tambov Province 17,793.5 1.8 17,827.4 2.1 20,451.7 10.5Tver Province 25,728.9 1.7 26,334.5 2.3 32,533.2 9.1Tula Province 30,527.6 25.2 25,041.6 -22.2 17,048.1 -33.8Yaroslavl Province 33,190.2 0.2 34,237.7 0.1 38,570.2 3.5City of Moscow 494,743.8 -19.1 520,221.6 0.0 535,657.3 -5.7Northwestern Federal District 561,944.6 -19.6 589,088.0 -3.0 672,471.4 3.9Republic of Karelia 7,070.2 -25.1 10,261.8 42.1 10,168.4 -3.9Republic of Komi 38,374.9 -9.8 51,936.2 14.1 64,976.4 8.1Arkhangelsk Province 19,821.1 -49.8 25,822.9 9.7 29,326.4 -2.3Including Nenets Autonomous District 6,343.1 -52.7 10,846.6 55.2 10,271.8 -24.8

Vologda Province 27,172.3 -34.9 26,617.7 -8.2 60,699.9 90.7Kaliningrad Province 25,618.0 -11.7 22,405.0 -42.3 33,495.7 11.5Leningrad Province 92,727.1 5.8 72,054.7 -8.5 92,547.1 15.1Murmansk Province 11,235.1 -36.2 17,417.7 -2.1 21,708.4 27.4Novgorod Province 14,240.1 7.6 15,446.0 -4.6 15,833.9 -21.5Pskov Province 6,157.9 -39.8 7,121.9 0.1 7,977.3 -10.0City of St. Petersburg 319,527.9 -32.7 340,004.0 -0.9 335,738.0 -6.3Southern Federal District 448,308.6 -4.4 397,471.8 15.3 528,579.8 10.5Republic of Adygeya 7,800.7 15.8 7,075.0 -15.1 8,328.4 5.1Republic of Kalmykia 2,912.9 4.5 2,531.3 -21.9 2,167.6 -19.8Krasnodar Territory 187,367.6 4.5 267,686.8 26.0 381,134.8 15.9Astrakhan Province 18,490.0 -35.6 16,871.4 -14.5 17,364.7 2.2Volgograd Province 32,443.2 -14.0 35,621.0 -0.2 42,843.6 2.5Rostov Province 67,316.9 -15.9 67,686.4 3.4 76,740.7 -4.0North Caucasian Federal District - - 135,584.2 -2.9 162,411.4 8.9Republic of Dagestan 53,644.9 15.7 60,223.5 9.6 68,358.3 6.5Republic of Ingushetia 3,899.9 1.0 3,253.7 -27.8 1,827.0 -50.1Republic of Kabardino-Balkaria 6,371.1 -14.5 4,008.6 -29.6 5,382.7 22.7Republic of Karachay-Cherkessia 5,163.2 -13.8 4,192.2 -31.7 7,239.4 44.1Republic of North Ossetia-Alania 12,241.1 0.2 12,943.9 0.4 14,654.0 1.2Republic of Chechnya 26,889.8 3.0 21,505.0 -23.4 27,384.4 16.7Stavropol Territory 23,767.4 -25.2 29,457.2 7.4 37,565.7 10.7Volga Federal District 623,562.6 -20.0 618,336.7 2.0 777,736.9 8.4Republic of Bashkortostan 73,505.8 -23.3 81,162.7 -3.5 99,511.3 3.4Republic of Mari El 6,497.9 -31.1 8,767.0 36.5 11,547.2 11.0Republic of Mordovia 13,830.0 -11.3 17,354.8 22.1 25,678.9 41.9Republic of Tatarstan 184,071.3 4.5 176,883.7 4.0 233,206.4 6.8Republic of Udmurtia 14,728.4 -32.0 14,683.6 0.0 19,320.9 37.0Republic of Chuvashia 18,517.7 -42.4 18,501.5 8.8 23,046.7 5.7Perm Territory 56,457.9 -18.2 60,192.4 -3.4 69,593.4 -0.7Kirov Province 9,044.0 -39.4 10,335.5 -12.2 12,043.2 1.6Nizhny Novgorod Province 102,806.9 -32.5 80,310.9 8.0 88,436.3 0.7Orenburg Province 25,205.5 -29.9 28,792.4 0.8 33,358.1 -2.9Penza Province 25,072.5 -24.9 23,504.4 0.4 30,150.1 18.6Samara Province 40,973.9 -27.6 45,962.8 3.5 64,927.6 27.7Saratov Province 33,386.0 -20.0 35,098.0 5.5 42,544.0 11.6Ulyanovsk Province 19,464.9 -21.3 16,787.1 -22.4 24,372.8 23.1Urals Federal District 503,152.0 -22.1 531,377.2 -0.5 593,442.6 1.6Kurgan Province 7,836.6 -25.4 4,542.9 -46.0 8,476.9 46.5Sverdlovsk Province 71,884.9 -35.6 83,728.9 15.4 106,323.5 8.2Tyumen Province 379,556.9 -15.8 402,823.3 -2.2 433,856.9 0.0Including Khanty-Mansi Autonomous District (Yugra) 149,653.5 -19.6 168487.9 4.0 211,553.4 9.4Yamal-Nenets Autonomous District 173,280.7 -4.5 172,356.6 -14.7 152,193.8 -12.5Chelyabinsk Province 43,873.5 -39.9 40,282.0 -2.4 44,785.3 -2.8Siberian Federal District 329,812.6 -22.1 364,936.2 -0.7 484,945.2 14.1Republic of Altay 4,205.3 -28.2 6,719.2 16.3 9,763.3 8.2Republic of Buryatia 13,245.3 0.8 15,947.9 2.7 19,990.1 9.7Republic of Tyva 2,018.0 83.2 2,225.9 7.2 2,463.2 2.0Republic of Khakassia 4,981.7 -13.7 7,199.7 13.5 9,290.9 13.5Altay Territory 16,958.4 -29.7 15,984.8 6.8 27,560.5 28.0Zabaykalsky Territory 22,753.6 -20.2 16,740.7 -35.2 20,132.3 2.4Krasnoyarsk Territory 67,619.2 -4.8 78,855.3 -1.6 97,571.1 -1.6Irkutsk Province 40,362.7 -26.0 52,162.3 6.0 73,651.2 20.8Kemerovo Province 65,923.1 -13.0 69,863.0 4.0 102,265.8 30.0Novosibirsk Province 28,227.3 -47.9 36,121.4 13.6 44,025.1 10.5Omsk Province 31,420.1 -36.8 35,725.7 2.1 41,724.9 9.7Tomsk Province 32,097.8 -18.8 27 390.5 -18.6 36 506.8 25.1


1�


Far Eastern Federal District 251,238.5 -8.6 308,928.6 6.2 385,126.7 6.6Republic of Sakha (Yakutia) 64,552.6 11.4 43,753.5 -39.9 58,573.5 12.5Kamchatka Territory 14,114.2 22.1 14,392.4 -23.1 14,862.6 -19.3Primorsky Territory 48,855.2 24.9 87,165.4 32.2 122,559.3 14.1Khabarovsk Territory 38,801.4 -5.7 67,134.1 61.0 55,583.3 -25.9Amur Province 28,014.5 -10.9 25,792.1 -12.8 32,056.3 8.1Magadan Province 5,653.1 -7.5 6,569.7 0.9 8,632.4 14.0Sakhalin Province 45,611.2 -44.0 52,176.5 5.8 78,809.6 36.1Jewish Autonomous Province 4,505.6 1.4 10,770.8 110.0 11,891.6 -0.3Chukotka Autonomous District 1,130.6 -35.8 1,174.1 4.0 2,158.2 87.0


Flats completed in Russia (millions of m of space and y-o-y change),January 2010-January 2012

2

0.0

5.0

10.0

15.0

20.0

Jan10

Feb10

Mar

10

Apr1

0

May

10

Jun10

Jul1

0

Aug10

Sep10

Oct

10

Nov

10

Dec

10

Jan11

Feb11

Mar

11

Apr1

1

May

11

Jun11

Jul1

1

Aug11

Sep11

Oct

11

Nov

11

Dec

11

Jan12

-30%-20%-10%0%10%20%30%

Flats completed (millions of m )2 Y-o-y change

Homes completed, number and total floor space, 2008-2012


2008 2009 2010 2011 Jan 2012Number of homes completed ’000 766.0 701.3 714.1 788.2 36.5Change y-o-y 7.2% -8.4% 1.8% 9.9% 23.7%Total floor space of homes completed million m2 63.8 59.8 58.1 62.3 3.1Change y-o-y 4.5% -6.7% -3.0% 6.6% 21.5%

In January 2012, alltypes of investorscompletednew homes.

36,500

Housing construction

Total floor space of housing units completed in federal subjects of Russian Federation, 2009-20112009 2010 January-December 2011

Floor space (‘000 m2)

Change(%, y-o-y)


Change(%, y-o-y)


Change(%, y-o-y)

Russian Federation, total 59,800.0 -6.7 58,100.0 -3.0 62,263.9 6.6Central Federal District 18,611.6 -2.7 17,142.8 -9.3 18,003.3 3.1Belgorod Province 1,097.3 -1.3 1,100.2 0.3 1,147.5 4.3Bryansk Province 345.2 7.3 390.1 10.5 421.0 7.7Vladimir Province 452.2 7.8 480.8 6.6 435.7 -9.4Voronezh Province 872.5 -22.1 1,048.2 18.1 987.0 -6.0Ivanovsk Province 181.9 6.5 190.7 2.3 224.0 17.4Kaluga Province 441.8 -30.0 507.5 11.1 586.5 17.1Kostroma Province 176.9 18.7 150.5 -16.6 152.9 1.0Kursk Province 457.2 2.2 377.2 -17.3 393.2 3.1Lipetsk Province 731.2 1.3 736.0 0.6 761.6 3.4Moscow Province 8,235.7 4.5 7,733.2 -8.5 8,219.4 3.5Oryol Province 285.5 -12.4 199.3 -33.9 330.4 32.6Ryazan Province 510.5 1.5 466.4 -8.5 475.3 1.9Smolensk Province 346.1 0.4 331.7 -4.1 370.8 6.5Tambov Province 564.8 0.8 568.7 1.7 602.9 5.9Tver Province 440.9 26.9 406.0 -9.9 416.6 -7.9Tula Province 394.8 -5.4 394.8 0.0 260.6 -34.0Yaroslavl Province 373.9 -5.8 290.5 -22.8 412.7 41.6City of Moscow 2,703.5 -17.2 1,771.0 -34.5 1,805.2* 2.1


14

www.pmrpublications.com* completed in the city of Moscow, including the area of Lyberetskie Fields the volume amounted to m


2,107,300

2009 2010 January-December 2011Floor space

(‘000 m2)

Change (%, y-o-y)Floor space

(‘000 m2)

Change (%, y-o-y)Floor space

(‘000 m2)

Change (%, y-o-y)

Northwestern Federal District 5,720.5 -12.8 5,541.3 -3.1 5,784.1 3.9Republic of Karelia 164.2 11.7 142.2 -13.6 178.8 25.4Republic of Komi 114.6 -37.8 81.2 -32.4 115.3 43.7Arkhangelsk Province 258.1 -25.6 268.2 10.1 280.1 -2.8Including Nenets Autonomous District 42.5 -33.5 39.8 -6.6 28.1 -33.6

Vologda Province 484.7 -11.1 409.1 -16.5 414.1 1.0Kaliningrad Province 606.6 -24.2 525.4 -13.6 545.0 3.9Leningrad Province 1,030.7 13.5 1,041.1 1.0 1,075.2 3.0Murmansk Province 22.1 136.1 27.8 25.9 22.7 -18.0Novgorod Province 245.7 -5.0 250.2 1.6 272.5 12.2Pskov Province 190.5 25.9 139.5 -27.2 174.6 16.7City of St. Petersburg 2,603.2 -18.9 2,656.5 2.0 2,705.7 1.9Southern Federal District 9,372.6 -5.5 6,739.4 1.9 6,921.8 1.7Republic of Adygeya 120.0 48.6 133.9 6.6 121.7 -9.9Republic of Kalmykia 75.3 26.9 80.6 11.5 99.0 13.4Krasnodar Territory 3,394.4 -13.8 3,554.0 4.2 3,688.7 2.3Astrakhan Province 477.9 25.0 495.7 4.1 503.2 0.7Volgograd Province 714.1 -12.9 666.7 -7.8 628.9 -5.7Rostov Province 1,804.7 -10.1 1,808.4 0.2 1,880.3 4.0North Caucasian Federal District - - 2,968.5 6.0 3,175.3 4.8Republic of Dagestan 1,014.8 11.9 1,104.9 3.7 1,210.0 7.7Republic of Ingushetia 33.5 -46.1 158.4 324.2 81.8 -48.3Republic of Kabardino-Balkaria 255.0 3.1 257.9 0.9 271.8 2.9Republic of Karachay-Cherkessia 90.1 -5.7 66.6 -26.0 82.0 16.9Republic of North Ossetia-Alania 197.7 0.4 198.0 0.2 200.1 1.1Republic of Chechnya 71.6 30.1 81.7 9.1 62.6 -45.7Stavropol Territory 1,123.4 5.5 1,101.1 2.1 1,266.9 15.1Volga Federal District 12,680.7 -6.5 12,353.5 -2.9 13,568.1 9.1Republic of Bashkortostan 2,352.0 0.0 2,006.3 -14.7 2,109.3 5.1Republic of Mari El 301.2 0.8 302.3 0.8 314.7 3.7Republic of Mordovia 276.6 -2.7 289.2 4.5 298.1 3.2Republic of Tatarstan 2,010.2 -9.6 2,027.0 0.8 2,396.1 18.2Republic of Udmurtia 455.5 -6.3 485.5 4.5 501.5 4.0Republic of Chuvashia 852.1 -12.9 874.1 2.6 876.0 0.2Perm Territory 675.5 -18.9 691.4 -0.5 731.8 -3.9Kirov Province 330.9 -22.3 370.8 10.4 400.4 5.9Nizhny Novgorod Province 1,402.3 3.6 1,452.1 3.4 1,474.2 1.4Orenburg Province 740.0 -4.6 581.1 -21.5 743.5 26.8Penza Province 608.6 0.6 624.1 2.3 670.1 7.2Samara Province 1,024.2 -22.9 1,040.0 1.6 1,330.6 27.8Saratov Province 1,120.7 0.7 1,142.6 1.1 1,168.7 2.1Ulyanovsk Province 530.7 4.4 467.0 -12.0 553.1 18.5Urals Federal District 5,300.0 -14.9 4,770.1 -10.3 5,384.9 11.8Kurgan Province 286.6 2.0 156.4 -45.8 183.6 15.0Sverdlovsk Province 1,594.4 -6.3 1,761.5 10.7 1,817.8 2.7Tyumen Province 1,988.9 -10.4 1,788.9 -10.8 2,067.7 13.9Including Khanty-Mansi Autonomous District (Yugra) 824.8 -7.5 539.2 -34.8 712.2 26Yamal-Nenets Autonomous District 130.7 -43.1 125.3 -7.5 133.7 -4.3

Chelyabinsk Province 1,430.1 -29.3 1,063.3 -25.7 1,315.8 22.6Siberian Federal District 6,220.3 -13.3 6,565.9 5.1 7,185.6 8.8Republic of Altay 59.5 2.0 68.0 12.0 76.8 12.4Republic of Buryatia 244.5 -20.4 270.8 9.2 302.0 11.1Republic of Tyva 50.3 13.0 49.3 -1.9 52.4 5.9Republic of Khakassia 183.2 -5.0 139.9 -24.3 153.8 9.4Altay Territory 654.0 3.5 659.4 0.8 661.6 0.3Zabaykalsky Territory 264.7 2.4 272.4 1.2 275.1 0.1Krasnoyarsk Territory 850.0 -22.8 966.4 12.3 1,049.9 6.3Irkutsk Province 593.8 1.5 629.5 4.5 751.3 19.6Kemerovo Province 1,069.3 0.6 1,002.7 -5.7 1,082.6 8.0Novosibirsk Province 1,212.3 -12.9 1,364.3 12.2 1480.7 7.3Omsk Province 605.1 -40.4 706.0 16.7 841.4 19.1Tomsk Province 433.7 -17.2 437.1 0.8 458.1 4.8Far Eastern Federal District 1,495.4 5.1 1,632.7 7.6 1,898.2 15.2Republic of Sakha (Yakutia) 291.1 0.1 300.8 2.5 315.6 4.2Kamchatka Territory 60.5 -4.6 57.5 -9.2 68.7 18.9Primorsky Territory 391.9 4.4 529.7 32.8 583.1 8.9Khabarovsk Territory 373.1 22.7 311.6 -17.8 382.5 21.4Amur Province 149.2 -19.3 163.9 9.6 240.2 44.4Magadan Province 15.6 4.2 15.9 1.8 18.2 14.1Sakhalin Province 161.7 8.6 200.3 21.6 234.7 16.3Jewish Autonomous Province 48.2 22.3 52.6 7.7 53.0 0.8Chukotka Autonomous District 4.0 156.4 0.3 -93.4 2.2 711.3


15

Federal subjects of Russia

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16

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Russian Construction Review – Bi-weekly News Briefing: a prime source of market intelligence for construction professionalsPublished by PMR Publications, www.pmrpublications.comul. Dekerta 24, �0-�0� Kraków, Poland, Tel. /4�/ 12 61� 90 00, Fax /4�/ 12 61� 90 0�, [email protected]

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