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Russia Ends Moratorium on Developer Penalties for Missed Handover Deadlines

Acting on a presidential directive, the cabinet restores fines intended to protect homebuyers.

Overview

  • Prime Minister Mikhail Mishustin said the government has decided not to extend the freeze on penalties for developers that miss contractual transfer dates under shared-equity agreements.
  • Political analyst Pavel Sklyanchuk told TASS that starting in 2026 overdue obligations will accrue penalties and fines payable to citizens.
  • Construction Ministry state secretary–deputy minister Yuri Mutsenek said the return of penalties should reduce delays in handing over keys to buyers.
  • Fedor Vylomov of the Construction Sector Ratings Agency estimated that roughly one in four to five developers could face penalties after the moratorium ends in 2026.
  • The freeze had been adopted to stabilize the market and was in place for about a year and a half before the decision to reinstate liability mechanisms.