Construction Ministry Hopes for Stable Prices of Materials

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Russia’s Ministry of Construction anticipates that the construction industry’s steady growth will halt the steep rise in building material costs, as revealed by Irek Fayzullin, the department’s chief, at the Innoprom International Industrial Exhibition, TASS reports.

The volumes [assumed] in industrial and civil construction allow us to have a steady market, so prices [for building materials] are comprehensible, and a significant spike in prices for building materials, such as that saw in late 2020 and early 2021, is not expected.

The Russian government, the Russian Union of Industrialists and Entrepreneurs, the Ministry of Industry and Trade, and the FAS all work together to ensure proper regulation, according to Fayzullin.

Russia’s Ministry of Construction and the Russian Union of Industrialists and Entrepreneurs (RSPP) are planning to agree to give discounts on government contracts, according to the minister. This will allow for the construction of items at the costs at which the projects have gained state approval.

The sharp rise in building material prices, according to Fayzullin, will be halted by the stable expansion of the construction complex and the volume of activity in Russia.

The market reacts to global building material costs. However, in general, if a manufacturer knows when and for how long he will sell his resources, the market will stabilize, he added.