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RGUD Asks the Government to Extend the List of Russian Industries Most Severely Affected by the Pandemic

The Russian Guild of Property Managers and Developers (RGUD) in the person of Nikolay Kazansky, Vice President of RGUD and Managing Partner of Colliers International, has prepared an appeal to Russian Premier Mikhail Mishustin

The Russian Guild of Property Managers and Developers (RGUD) in the person of Nikolay Kazansky, Vice President of RGUD and Managing Partner of Colliers International, has prepared an appeal to Russian Premier Mikhail Mishustin, requesting him to consider the issue of augmenting the list of Russian industries that have been most severely affected by the rampant coronavirus infection and including supplementary OKVED (National Classifier of Economic Activities) codes on top of the list approved by Russian Government Resolution No. 434 dated 03 April 2020 “On approving the list of national industries that suffered most from the general disturbance caused by the spread of the new coronavirus infection”. RGUD asked to take into account the amendments entered via Russian Government Resolutions No. 479 dated 10 April 2020, and No. 540 dated 18 April 2020.

The Guild serves as an umbrella for builders, investors, residential and commercial property managers, architects, real estate lawyers and advisors. In the opinion of RGUD, some industries most severely affected by the pandemic and forced to halt or drastically limit their business activities because of restrictive measures imposed, which have lost a significant share of their revenues as a result, have not been included in the list of victimized industries. In the meantime the given industries are backbone sectors of national economy, creating thousands of jobs, being major and conscientious taxpayers. In the lack of government support or the refusal to include a number of industries listed below, the consequences for the entire real estate market will be extremely severe, which might entail a series of bankruptcies, an increase in the unemployment rate, and the growth of consumer prices in the given sphere.

Based on its expert evaluation of the given economic sector, and to ensure a more comprehensive approach to this problem as well as for the sake of evading possible negative economic repercussions, RGUD suggests that the List of National Industries most severely affected as a result of rampant coronavirus infection should be augmented with the following OKVED codes to be included therein:

68.20 - own or rented immovable property management and lease;

68.31 - activities of real estate agencies for remuneration on a contractual basis; 

68.32 - immovable property management for remuneration on a contractual basis;

68.32.1 - facility management of the residential stock (housing) for remuneration on a contractual basis;

68.32.2 - facility management of the non-residential stock for remuneration (or) on a contractual basis;

71.12 - civil engineering surveying, design and engineering, construction project management, construction supervision and architectural oversight, giving advice in these areas;

71.12.1 - activities related to civil engineering and design, construction project management, supervision and architectural oversight;

71.12.2 - activities of the general contractor, customer, developer;

41.20 - construction of residential and nonresidential buildings.

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