Russia may face building materials shortage

Russia may face a shortage of building materials by 2008, including cement, prefabricated ferroconcrete structures, roofing, walls and other materials, Vladimir Yakovlev, Minister for Regions’ Development, said in his report at the Government Hour meeting of the Duma, devoted to the creation of available housing market and the development of the mortgage system.

The main reason for it is the growth rate of the building materials industry, he explained. “The government should find a way to resolve the problem within the coming two years,” he stressed.

According to Yakovlev, the Ministry for Regions’ development and the regional administrations are now working out measures for boosting the development of the building materials industry and the construction sector. He said the building materials industry should develop in conditions of the stimulating and regulating participation of the state. This refers, in the first place, to the import of the equipment, which is not produced in Russia, the lifting of import duties, the cancellation of VAT and the attraction of foreign investments, including within the framework of joint enterprises. Yakovlev said as well that some construction firms are monopolists in their regions, which negatively affects the prices of building materials and dwellings.