FBK Legal News

Izvestiya reported that State Duma was introduced a draft legislation allowing local authorities prohibit granting developer with a work permission only if a company did not commission project on time or “kept it on ice” for more than three months. The project also obliges developer to keep reporting using single bank account – so that non-earmarked use of money could be prevented.

Head of FBK-Legal Corporate Practice, Alexander Ermolenko noted that this is measure of minor efficiency. “There is no difference whether developer pulls funds from one account or two accounts. Such limitations neither help nor hinder control”, the expert clarified.