Business Ombudsman Moscow: foreign investors not afraid of demolition of the retail pavilions

Business Ombudsman Moscow: foreign investors not afraid of demolition of the retail pavilions


MOSCOW, 11 February. Foreign investors are unlikely to deter the actions of the Moscow authorities for the demolition of objects declared by the squatter. This opinion in an interview expressed Moscow business Ombudsman Mikhail Vyshegorodtsev.

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“I think foreign investors the programme of demolition will not be deterred. We have a Federal legislation to guarantee foreign investors a return on their investment. They develop projects, calculate the costs and future revenues, the authorities help them with the design of the necessary documentation,” said Vyshegorodtsev.

While the Moscow business Ombudsman considers that the actions of the authorities may affect the investment on the secondary market. “It is likely the reduction in secondary sales, particularly those objects that have signs of unauthorized constructions, because buyers will be afraid to trade, because the authorities can ask this object to be demolished,” – said Vyshegorodtsev.

Promised alternative plots

The Moscow government has already announced that it will consider providing alternative sites for business. “I ask you to contact the owners of the former structures. If they want to do business and to invest, to give them that opportunity to other land in accordance with the Federal and city legislation,” he instructed the mayor of Moscow Sergey Sobyanin, his Deputy Natalia Sergunina at the meeting of the Presidium of the government of capital on Tuesday 9 February.

Large-scale demolition of the retail pavilions that the city authorities have recognized the squatter, began in Moscow on the night of 9 February. Then was initiated the dismantling of the 97 objects. According to recent reports, the demolition of 85% of the buildings have already been completed, with half the sites removed all debris. All are to be demolished 104. The government plans to complete the dismantling by the beginning of March.

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As stated earlier, first Deputy head state inspection for control over use of objects of real estate of Moscow Timur Zeldich, these objects are recognized as illegally constructed on several grounds: “Land plots for capital construction of the city did not allocate the permission for the construction of capital facilities and the acts of commissioning of objects of capital construction, were not issued”.

For their part, the owners of buildings believe in the illegality of the demolition. Entrepreneurs claim that had the ownership of commercial properties and all the permits, confirmed the decisions of the courts.

The priority is the safety of residents

According to Vyshegorodtsev, if the objects which have been declared by the Moscow authorities for self-construction, pose a threat to residents, the city must first ensure the safety of residents.

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“On the one hand, the authorities should create favorable conditions for business development, with another – the city is responsible for the safety of residents. And if the object is a definite threat, the authorities should ensure first the safety of residents. A typical example is the metro. Let’s not forget that in fact functions does it have bomb shelters. If something happens, there’ll be nothing but a huge number of people, and quite bad if they stumble on some buildings at the entrance to the station,” said Vyshegorodtsev.

As we reported earlier, first Deputy head state inspection for control over use of objects of real estate of Moscow Timur Zeldich, “the objects included in the list are tolerable, are in engineering services, and it means that they potentially dangerous in and of itself, and from the point of view of operation of engineering networks”.

“First, none of the Supervisory authorities does not know how to build these objects, how they were taken into account the relevant rules and regulations. Secondly, for example, in any accident of a heating system or gas pipeline emergency services will be unable to promptly eliminate the consequences simply because they interfere with the object of unauthorized construction, and in fact is already capital”, – he stressed.

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