UralBusinessConsulting Agency of Information and Analytics has been keeping track of the case of Noviy Grad, the local developer. The agency has recently got hold of a paper which states that CEO of Sverdlovsk Region Union of Builders Yuri Chumerin, driven by the request of Yuri Repeta (Noviy Grad Chairman), is suggesting that the members of the union should invest in Noviy Grad in exchange for certain building materials.

‘Noviy Grad is having a hard time now, and, since this developer is a member of our union, we would like to somehow support the company,’ Mr. Chumerin said to UrBC.

Noviy Grad was blacklisted by the city council in 2006 because it failed to commission a number of buildings in time. The company’s former head Yuri Repeta is now involved in a criminal suit related to fraud. The builder’s general contractor HydroSpetsStroy Ltd. is undergoing bankruptcy proceedings at the moment after the corresponding decision has been made by Sverdlovsk Region Court of Arbitration.