The Mid-Urals Development Corporation explains the delay in the construction of a low-rise residential block Istoksky by the new regional Cabinet formation.

‘Changes in the composition of the Cabinet were the reason why a crucial agreement between the corporation and Sverdlovsk Region Government could not be signed,’ says the company’s Director-General Sergey Filippov.

The corporation also explained the project of was supported by the Construction Ministry.

‘We gave this project our general support, and we intend to develop it. Under the existing agreement, the dwellings will primarily be offered to citizens who are entitled to new housing under the regional programs,’ says the region’s Construction & Architecture Minister Sergey Fedorov.

He also pointed out that 60% of all new housing would be low-rise private houses by 2015.

Meanwhile, Istoksky village was involved in a criminal lawsuit last winter. The investigative committee declared the housing unfit for living in.

Besides, it has been reported off the record that the corporation and the Governor’s new team do not see eye to eye and that the authorities want to take the project away from the corporation. For one, Titanium Valley Management Company was taken off the list of the corporation’s affiliates. UrBC’s sources also report that the company’s DG Sergey Filippov might have to resign. However, no official statement has been made to this extent.