The Russian government is expected to extend the moratorium on penalties for developers beyond its current expiration date of June 30, according to economists and legal experts. This extension would prevent homebuyers whose properties are delayed from suing construction companies for penalties.

The initial moratorium was introduced in March 2024 to support the construction industry during a period of economic instability. It was originally intended to last until the end of the year but was later extended to June 30, 2025.

The moratorium suspends the ability to recover penalties for delays in project completion, failure to address construction defects, and other developer shortcomings.

Economist Maksim Maramygin suggests the extension is necessary due to the impact of high key rates on developers. He believes the moratorium should remain in place until the key rate normalizes, ideally reaching a level close to the annual inflation rate. Maramygin estimates that the key rate needs to fall significantly from its current level before the moratorium can be safely lifted.

Lawyer Pavel Nevolnichenko also anticipates a further extension of the moratorium. He clarifies that while the ban is in effect, homebuyers are unable to sue developers for delay penalties. However, he notes that compensation for other losses, such as moral damages or construction defects, may still be pursued.

Nevolnichenko emphasizes that the moratorium specifically targets the recovery of penalties. If a court has already ruled in favor of the homebuyer and issued a writ of execution, the plaintiff can still receive the awarded funds despite the moratorium. However, if a writ of execution has not yet been obtained, homebuyers will need to wait until the moratorium is lifted to receive compensation for project delays.