To implement the statutes of Federal Law No. 294 of December 30, 2012, On Introducing Amendments to Certain Legislative Acts of the Russian Federation aimed at minimising risks in co-funded construction, the Ministry of Regional Development has begun to select the founders for the society of mutual insurance of civil liability of developers.
Creating a society of mutual insurance of civil liability of developers is part of the action plan developed under the Presidential list of instructions on protecting the rights of individuals who have been defrauded during the construction of residential apartment buildings.
As of March 31, 2013, there were over 800 problematic buildings and over 85,000 people had been defrauded by dishonest developers in Russia.
The Ministry of Regional Development has the authority to implement state policy and update the legal framework in the area of co-funded construction of blocks of flats and other property, and coordinates the operation of the federal executive bodies in this field.
Source: Ministry of Regional Development
