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All over Russia, meetings of cheated investors were held on July, 25th

The investors believe that their problems are not likely to be resolved by the new law on a compensatory fund

July, 25th , 2017, turned to be the day of all Russian protest actions staged by cheated (‘’hoodwinked’’) co-investors. Pickets, marches and protests sanctioned and unsanctioned by the authorities were reported to have been planned initially in 13 major Russian cities.

But in fact, the number of Russian regions hit by the protest became much greater.

The all Russian protest action involved Tomsk, Novosibirsk, Kostroma, Moscow, Leningrad, Nizhninovgorod, Vologda, Kaliningrad, Krasnodar, Altay region and republic and other Russian regions.

Protest rallies of small investors who lost their money and apartments were also reported to have taken place in Saint Petersburg, Perm, Ivanovo, Rostov-on-Don and Ufa. In Moscow, a meeting of small investors was held in Sokolniki park. Five towns of the Moscow region were also involved in the protest actions.

According to various sources, as many as 16 thousand people have become cheated in Russia as a result of scam construction schemes over the last three years. According to official state sources, the number of cheated small investors in 67 Russian regions as March of this year had totaled about 40 thousand people, and number of those gotten into the so called ‘’problem’’ housing reached several thousand people.

However, the real number of these people is much higher. According to the data provided by the ‘’Russian Union of Construction Co-Investors’’, the number of Russians who have suffered in fraudulent schemes on the housing market is at least 150 000 people.

The regions where the situation is reported to be the worst are Samara, Novosibirsk, Rostov, Krasnodar, Moscow region and Moscow City.

Earlier, the government of the Russian Federation recommended that the heads of Russian regions provide information on the quarterly basis to the Ministry for Construction information regarding the cheated investors and their problems. The local governors were suggested to approve until August, 2017, regional schedules of problem resolving for the housing markets and provide information on implementation of those schedules.

In the meantime, the Council of Federation, the upper chamber of Russian Parliament, has approved and passed the law on a compensational fund of co-investors, which aims to find a solution to the problems of those who are supposed to be involved in co-financing. However, those whose housing rights have been violated seem to be left high and dry and not protected by the new law.

Those 150 thousand victims still have to stage meetings, starve and rely on mercy of the authorities, and, personally, the Russian president, who, in the opinion of the all Russian Congress of Co-Investors, is the only person in Russia able to air their grievances?

The irony is that Vladimir Putin’s instructions on the problems of small co-investors passed in 2011, 2012, 2016 and 2017 in reality have never been enforced in the Russian regions where cheating and fraud on the housing market is rife.

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