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. Last Updated: 07/27/2016

City Hall to Pay in Apartments, Not Cash

Moscow Mayor Yury Luzhkov has canceled his own ban on City Hall’s construction department paying building contractors in housing and in promissory notes.

He has also decided to bring back the practice of wholesale sales of housing.

"This is a forced measure, it will last only until Jan. 1," said Vladimir Resin, deputy mayor and head of the architecture, construction, reconstruction and development committee. "Normal settlements will be made after the new year."

The construction department said that it was the contractors themselves who pushed the Moscow city government to make its decision on means of payment.

"It is simply impossible to manage this year without settlements being made in housing and promissory notes," said department head Leonid Krasnyansky. "But they are the guilty ones — last year they didn’t build 353,000 square meters of that planned and this year they will fall short by 318,000 square meters."

Alery Silin, head of the department for the experimental construction of micro-regions, said at a meeting on construction in the Kurkino region that the department of non-budgetary construction policy owed him 53 million rubles ($1.9 million).

"Settlements haven’t even started," he said refusing to comment further on relations with the department on the grounds that he "needed to work with them in the future."