Russia Reinstates Daily Fines for Developers Over Delayed Apartments
Russia has reinstated daily penalties for developers who delay handing over apartments. The rule came back into force on January 1, 2026, after a six-year moratorium. Homebuyers are now taking legal action, with over 130 lawsuits already filed in Vladivostok alone. The moratorium on penalties, introduced in 2020, was not extended into the new year. This means developers must now pay compensation for each day they fail to meet deadlines. Lawyers report a surge in legal cases as frustrated buyers seek redress.
Attorney Nikolai Goncharov claimed some developers exploited the moratorium by prolonging projects and cutting costs. He accused them of acting in bad faith, leaving buyers with substandard homes or unfinished buildings. Lawyer Dmitry Kachan, who represents 48 clients, confirmed the trend. Twenty of his clients have already taken developers to court, with average claims of around 600,000 rubles for delays. Kachan warned that while some firms may pay compensation, others could collapse, leaving buyers with nothing. Vladivostok’s district courts have been overwhelmed by cases since the start of the year. The disputes focus on missed deadlines, poor construction quality, and unfulfilled promises.
The return of penalties marks a shift in accountability for Russian developers. Courts are now processing hundreds of claims, with many buyers demanding compensation for prolonged delays. The outcome will depend on whether developers can meet their financial obligations or face bankruptcy.
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