Page 64 - RUSRptAug18

model has been supported by state initiatives. Now the government prolongs discounted loans "First Automobile" and "Family Automobile" introduced in 2015, and increases the first loan instalment discount for Far East consumers from 10% to 25%.
9.1.3 Aviation sector news
9.1.4 Construction & Real estate sector news
Boeing plans to spend a total of $27bn in the next 30 years on direct purchases in Russia , President of Boeing in Russia and the CIS Sergey Kravchenko told TASS. "Out of $27bn that we are planning to spend on direct purchases in Russia within the next 30 years, $18bn accounts for titanium purchases," he said. Currently the company purchases most of titanium products from Russia’s titanium producer VSMPO-Avisma. The respective contract expires in 2022.
President Vladimir Putin signed amendments to the real estate law that provide greater protection for clients purchasing residential housing on July 3. It’s a two-stage transformation to the new operating environment. From 1 July 2018, the initiative has raised the requirements for attaining construction permits, the most noticeable of which s the launch of dedicated bank accounts for construction purposes under bank oversight. From 1 July 2019, developers are going to lose the opportunity to collect money from clients during the construction stage (it is going to be stored on escrow accounts until the property has been completed).
Although the roadmap for the segment has now been finalised, the transitional details are still in the early stages of implementation. We have yet to see the bank terms for supervision, the future terms of funding for developers, or the procedures that government agencies will use to test other operational requirements with respect to capital sufficiency, experience and the plot allocation for developers.
The Russian real estate reporting season was on a high note in July.
Volumes remained at impressive levels for PIK and Etalon, and surged for LSR from a low base amid 10-15% organic price inflation.
64 RUSSIA Country Report August 2018 www.intellinews.com