what is seen as a show of support for its bid for statehood. up next artie's interview show spotlight we talked to the director general of the russian housing development foundation off asks alexander braverman if government targets to double residential development are achievable plans or a pre-election ploy to butter up the population. hello again or welcome to spotlight. on our team. today my guest in the studio is.

russia's biggest cities are going through a construction thousands of new buildings right over here and the real estate market keeps growing even so it is not enough and the russian government wants to double development in the next five years isn't possible statement just a pretty election. what's the big picture for real estate we're putting these points to the director general of the russian housing development foundation . official say about thirty million square meters of residential space are brought to the market every year real estate prices have grown five times during the last decade and demand is still extremely high many people however can't afford a flat and continue to live in soviet style shared apartments or dormitories meanwhile the construction mostly on the bigger cities while other parts of the country are left under developed.

thank you very much for being with you having here first of all you are getting ready to take part in a great event and. the event will bring together lots of people from many parts of the world especially the russians and americans i think will be the central. dealers are that for what you expect what are they us partners that you wish to meet. first of all we as minimum we expect discussion to clarify. to walk in russia and to walk in construction area to russia especially in area of affordable housing. has nixon and we expect certain steps to attract direct investment from from different kind of investor first of all from the u.s.

when you see affordable housing you mean in russia in terms of cost today today housing in russia i think it's one of the one of the most and spencer in the world so you wanted to make you wanted to be affordable by today's standards or by what by world. and mean i mean russian standards this. was created by this special special decree or ministry or were regional development. it describes describes square metal. and materials etc oh a little bit of a square meters but should affordable housing to you from your point of view become much more cheap in russia than it is today for different segments of horrible housing means affordable housing for the our main goal our.

we aimed segment of of middle class. economic a to the population and. it's. important they haven't seen well calling to signs in the streets of moscow haven't seen. many foreign companies building in moscow this doesn't mean that russia's construction business is not attractive for foreign investors russian conception business is very attractive that is what we are it is for for fall or for foreign investors. i would like to give you. some takers the ira are from different regions of russia are between twenty four till thirty five percent compared with the

revenue here growth yeah. absolutely absolutely. and our main goal. to do this business together with foreign investors signal to industry with the minimum risk for them i mean evidence of your barriers corruption etc to reduce it. because russian industry in russia has seen upsurge this year after a period of slowdown spotlights yelena dimmy there are reports. the credit crunch he'd construction industry in russia hard two thousand and eight so the majority all work suspended virtually no new projects were launched to two thousand and ten when recovery began it was partly due to the government which supported numerous projects including preparations for big upcoming events like this which is two thousand and fourteen winter olympics the two thousand and twelve

aipac summit invited a stalk and the two thousand and thirteen university aid increase on what the government does not intend to rely solely on its own resources its encouraging investment both domestic and foreign to step in meeting with c o o's of the big plays in the international markets. and mr putin promised predictability of the russian economy which he believes is enjoying by coast crisis revival to ship the what is two thousand and nine to the third quarter of two thousand and eleven the record investment in russia has exceeded one hundred billion us dollars and the first nine months of this year has seen a twenty percent growth in direct investment. as for the russian construction sector it has been shall we groove this year as well the country's economy's currently been fueled by growing domestic demand which is now climbed to one three year high despite the recent months turbulence in the global market and it has so

far been unaffected by the euro zone debt crisis. or so so we see and you also mentioned that there that russian construction industry is should be very attractive for foreign investors well of course if you can get away with twenty four percent of the revenue is it before tax or after tax deferred taxes ok but anyway attractive but there are global players such as for example the brookfield which which in brazil own builds i think more than all russia russian companies build in their country are you afraid are russian russian companies afraid of competition for say a geologist's search big. search because russian market is huge market huge market and to the best of my knowledge just. see the spear is for all companies russian companies foreign companies

and demand the russian market is saw big there be it's another place for all players the russian government is setting a go you mentioned that there the demand is high so the goal is to double the amount of construction. you know a double in like about five years or is it is it is a feasible go can this can this really become reality it's absolutely a reality because. we have got a market in the patent in foundation and we. measure the demand and we have got a figure is which shows us that. the. two hundred million meters very year it's possible to sell in

russia to southern russia but even at the existing yes yeah it means that it's a huge market. tell you begin again and again what kind of investment are you seeing where you would be talking to your colleagues to your american colleagues you know what you need what financial investment cash or you'd rather prefer know how and and like real real sort of exchange exchange of experience very simple one answer or both because both from american. side. where i expect and where expecting more financial investment and regard in construction we have bought a lot of european partners. practically every month we receive. letters with

a suggestion of new technology is. very. pure etc it means we have got we have opportunity to make choices it means it means first of all for us direct investment what preferences does best through all the developer get from a corporation with the housing development foundation for main blocks for main blocks the first of all. first of all. it's so called administered the resource. no doubt you discussed in this place the problem of corruption in russia of course . the plots of land of practically zero.

so called resource what will the. last phrase as ministers of resources it's very widely used in russia work well what does it mean administered resource makes you overcome corruption helps you say money you don't know about iraq think grafting there are grants or what. resources from the federal level means that regional. and local authorities will do the jobs according to their rooms free of charge. so save your money at least at least the plots of land for fun some people told me some people in your business told me that after the new mayor came to most committed to sobriety and yes mr luzhkov the the number of red tape you have to cut the number of bureaucracy in construction to be as low is it true it's really so

it's really so but they have problems with the with the plots of land in moscow. but they need you more school will get a but you need to for them to construct you affordable housing so administers a resource is one big thing that an investment developer gets by cooperating with the housing development foundation will talk about the other three after a short break we're talking to alexander bradley manning director general of the russian housing development foundation back in no time so they wouldn't know him.

a very warm welcome to you this is your news today protesters on holds true today at. least in canceling your

chance to choose is it a good move for example the status of the human experiment is it succeeding with. programs in this rap music would expose the busy lives we try to make sense of global economy and it's all changed things as financial templates each of the research scrambling to maintain our confidence in long kids and taking on wants to be easing trade imbalances recession look keep the nation's close to collapsing a subprime loan foreclosed homes people. to fail simple a banks again feel level tightening as us crash and imminent smash the ceiling seems to me just like all the classes in athens greece the i.m.f. in construction and just programs increase the total economy.

would be soo much brighter if you move out songs from funds to oppression so. these problems start totty don't come. and discover it. communicate with you want. to come. see what nature can give you.

welcome back to spotlight an amalgam often just a reminder that my guest on the show today is alexander but i've been among the rector general of the russian housing development foundation age the after let's call it shortly well we started talking a xander about the the preferences that developers get by dealing with the age they have you mentioned one administrative resource which helps you save money on a career out of ok well well it's actually green says that process is the second circuit the second one in for such a company and complements. recently i have read. it seems to me in the most year in russian newspaper rhythms to be the concern and concern in western glam and russia are between between costa rica area . two main company and its infrastructure.

and permission for construction. our support for a government for infrastructure company and ease opportunity for potential investor to integrate in grits. gas electricity etc etc. their third component is. the commentary company because of we have go out. agreements with the. branch of branch of powers especially especially agency which is responsible for registration it means we are ready to support potential investor to register their rights for the building. multiplexes. and finally.

last but not least the. final financial support for the financial support because of two companies within financial supporters we have got agreements with the. banks largest bank in russia yes. yeah absolutely. for population for constructors. some western companies will giants like i care for example i think the main. the main thing that they may need from you is number one the administers of resource because the they sometimes say that they encounter huge problems while dealing with authorities so so so i think we'll do. well how helping foreigners this is the main thing you do for them is a true yeah i've heard the history of i care and i would like to see.

the foreign investors it's certainly to help them to solve problems they will. not have problems. during the process of cooperation and respond. because of we have good the agreements with all eighty three. regions of russian federation's. thirty three now let's talk about a different matter about the housing itself when we say housing in russia we mean we mean apartment blocks well which is strange for most of our viewers because because in many countries in most industrial developed countries people prefer living in individual houses now and yeah well if you're saying maybe that would be an olympic apartment block in russia like i think ninety percent of the population

live in apartment blocks why why so this is sort of a traditional what a traditional salute. unfortunately unfortunately population and russia have has had to live in brick and harris houses. we have a special program to promote a low rise russia. but in my view my personal view and i'm sure of the view of my colleagues we will promote all these programs just. on the positive symbols we have called the this positive symbols when he was talking you know when. in history it's causally with the mosque or etc we will show it will show it people to people but will you make individual housing affordable they really did this is that it should

be cheaper that it's it's absolutely possible because because of the week. during three years we are conducting the competition housing of twenty twenty one. twenty twenty one and during this competition the price of individual housing should be not less then eight. eighty eight hundred thousand dollars pregnant but as a grandma but the one of those the problem rush is also that we cannot afford building houses like in united states from cardboard and plastic because because of the winters i mean. the problem for american programs of construction

of canadian construction and russia because this population with. russia doesn't look at this house like. the first house and first house. it looks like that you are making that sure because of because in sandra's seventies panels it's leg that chair there's a problem. the same problem mentioned before the. problem of maturity well we have a pretty nice dutcher here you see. this is what like love like no other luxury dad . talking about the actions the age the fear fund as far as i know holding competitions of the best house for the twenty first century world many companies take part to maybe this house will take part in this competition listen what from your point of view is the ideal hands for the twenty first and

what kind of house she will in your competition. idea house the this is this picture a low rise with. all their will of of energy. very ecological. and with a good view and. with the opportunity to reach the place of job. within the. very very good team what what's very good time because i know in moscow some people some people drive more than an hour to get to work here more modern inter some even more than one is what do you call good time good drive or for four regions in russia in my view it's . thirty minutes in moscow it will be good will be realistic it will be

good to know with one of you driving within one hundred feet but if you take the subway train should be faster ok do foreign architects take part in these competitions of yours unfortunately unfortunately. from former u.s.s.r. and so. socialist countries but we expect the best i could. be could get access partly we describe this problem because greater mystery before. and we are expecting. the participation in our committees well the two thousand and eight financial crisis led to a lot of foreclosures so what do you do to avoid the same problem now russia where

the average person seeing power of people is much lower than that then even the. repression. it's a. marker a economics problem not a problem of affordable or that. glass business for us because of the macro micro can a problem and in my view absolutely sure that the. current situation in russian economy and the current situation situation in russian prime ians is quite good to be quite stable. housing in moscow is more expensive than a review by salute it's a comparable to london but can the market can moscow housing market really really compete with london dubai. red. if

we discuss the problem. the best bit of competition regarding regret in prices. moscow is absolutely comparable with with the with the with with london and dubai regatta and quality unfortunately. no. main task to do it together with the more school local authorities but to live with the city said ben in the new major we are going to get the absolutely together and we met. one one one one time and there are there are weak and. the problem will be solved so so you are optimistic yeah ok well thank you thank you very much and i wish we should good luck on the upcoming court when we thank them again you coming it was a pleasure yes thanks a lot and just a reminder that my guest today was alexander but i'm going to my director general

of the russian housing development foundation and that's it put out from all of us here if you want to drive your sales or if you have someone like you think i should interview next time to drop me a lot of powder in our path. and let's keep spotlight interrupts movie back with more pathetic problem fun of what's going on in and outside russia i'm so glad they are on our team and taking. those who are fascinated with history. to do those who have

a sweet tooth. to those who can't live without the sky. and of course to the nature. this magnificent land offers its treasures. between the earth and the sky. wealthy british style sun it's time to. put the. markets on. find out what's really happening to the global economy for a no holds barred look at the global financial headlines to name two kinds of reports on.

this is our t.v. live from moscow i'm sean thomas and these are headlines head of the g. twenty summit in cannes and thousands take to the streets in the french riviera to express their anger at the state of the world economy occupy movement activists from around the globe are taking part in the protest amid a heavy police presence the current state of the eurozone is not likely to take center stage at the meeting of the world's twenty largest economies. the un says it is uncovered a previously unknown nuclear program in syria and according to the i.a.e.a. documents were found linking the project to the so-called father of pakistan's nuclear bomb the discovery comes as damascus claims it has reached an agreement with the arab league and the deadly crackdown on anti-government protesters. israel reportedly approves military action including the use of ground forces against gaza after a wave of rocket attacks over the last week meanwhile the israeli air force.