‘Land is sometimes allocated illegally in Yekaterinburg, Nizhniy Tagil, and Pervouralsk,’ says Federal Antimonopoly Service in Sverdlovsk Region.

‘The law states that beginning from October 1, 2005, all land allotments meant for construction purposes must be put up to auction and there can be no arrangements between the local council and the builder. We check to see how these rules are complied with very three months and, if there are any violations to that extent, we have to do more inspections, since any prior arrangements violate free competition. The city councils often refer to the fact that the land was given to the builder before October 1, 2005, so our task is to make sure this is true,’ says the spokesperson for Federal Antimonopoly Service in Sverdlovsk Region.

‘Each municipality has its peculiarities, so you never know what the outcome of a certain case will be. The allotment in question is normally supposed to be sold by auction, and the losses thus sustained by the developer must be handled in cooperation with the local authorities.’