A colleague forwarded this to me, sourced from here. It describes the procedures, time, and cost to build a warehouse in Russia.
Data as of: January 2008
Estimated Warehouse Value: RUB 26,120,000
City: Moscow
| No: | Procedure | Time to complete: | Cost to complete: |
| 1 | Apply for an act of permission for use (ÐРИ) to the Department of City Planning Documentation Development at the Architecture and City Planning Committee of Moscow (MoskomArchitektura). | 1 day | no charge |
| 2 | Request and obtain situation plan of district and conclusion for a District Land Commission from the Architecture Planning Department (APD) | 15 days | RUB 43,680 |
| 3 | Request and obtain a conclusion from Territorial Union of Land Use Regulation (TOPЗ) | 15 days | RUB 4,330 |
| 4 | Request and obtain a decision by the District Land Commission on land plot provision and city planning regulation | 30 days | no charge |
| 5 | Request and obtain clearance of draft disposition of Prefect with the Architecture Planning Department (APD) | 7 days | no charge |
| 6 | Request and obtain clearance of draft disposition of Prefect with the local government | 7 days | no charge |
| 7 | Request and obtain clearance of draft disposition with the Territorial Union of Land Use Regulation (ТОРЗ) | 7 days | no charge |
| 8 | Request and obtain the disposition on preparation of an act of permission for use (ÐРИ) by the Prefect | 7 days | no charge |
| 9 | Request and obtain a conclusion on compliance of the proposed building with specified city planning and territory use regulations | 152 days | RUB 4,500 |
| 10* | Request and obtain technical conditions from water and sewage services | 45 days | RUB 17,673 |
| 11* | Request and obtain technical conditions for an electricity connection with MosEnergo | 30 days | RUB 5,490,520 |
| 12* | Request and obtain technical conditions to connect to telephone line | 30 days | RUB 3,000 |
| 13* | Request and obtain approval from MoskomArchitektura on engineering of the facility | 14 days | RUB 4,500 |
| 14 | Request and obtain an act of permission for use (ÐРИ) from MoskomArchitectura | 30 days | RUB 6,700 |
| 15 | Request and obtain disposition of Prefect on the inception of construction design (decision on construction) | 60 days | no charge |
| 16 | Request and obtain approval of design conditions by the Department of Well-Being of MoskomArchitektura | 7 days | RUB 53,300 |
| 17* | Request and obtain approval of design conditions by the Department of Preparation of Project Approvals of MoskomArchitektura | 14 days | RUB 12,100 |
| 18* | Request and obtain approval of design conditions by local government | 7 days | no charge |
| 19* | Request and obtain approval of design conditions by the Prefect’s Office | 14 days | no charge |
| 20* | Request and obtain approval of design conditions by the Emergency Situation and Civil Defense Department | 14 days | RUB 14,728 |
| 21* | Request and obtain approval of design conditions by Moscow State Expertise | 14 days | RUB 7,364 |
| 22* | Request and obtain an act of the Moscow Geological-Geodesic Department | 15 days | RUB 36,700 |
| 23* | Request and obtain approval of design conditions by the Sanitary Services (Rospotrebnadzor) | 30 days | RUB 13,800 |
| 24* | Request and obtain approval of transport routes from the Moscow City Transport Agency | 30 days | RUB 8,837 |
| 25* | Request and obtain approval from the State Inspectorate of Road Safety (GIBBD) | 30 days | RUB 8,837 |
| 26* | Request and obtain approval from the Department of Comprehensive Well-Being of the city | 30 days | RUB 4,600 |
| 27* | Request and obtain approval from the Department of Nature Use under State Ecological Expertise | 21 days | RUB 29,455 |
| 28 | Request and obtain Sketch No. 2 from the Moscow Geological Institute | 30 days | RUB 10,100 |
| 29 | Request and obtain approval of Sketch No. 2 from the Moscow Architecture Committee (MoskomArchitektura) | 30 days | RUB 4,000 |
| 30 | Request and obtain the construction passport from the Moscow Geological Institute | 30 days | RUB 8,837 |
| 31* | Request and obtain approval of volumes of “outline of construction arrangement†and “GenPlan†from MoskomArchitektura | 30 days | RUB 6,500 |
| 32* | Request and obtain approval of volumes of “outline of construction arrangement†and “GenPlan†from the Prefecture | 30 days | no charge |
| 33* | Request and obtain approval of volumes of “outline of construction arrangement†and “GenPlan†from the GenPlan Institute | 30 days | RUB 12,200 |
| 34 | Request and obtain Regulation No. 2 and certificate of approval of Architectural City Planning Decision | 30 days | RUB 3,600 |
| 35 | Request and obtain project approval by Moscow State Expertise | 60 days | RUB 58,000 |
| 36 | Request and obtain permission for construction (building permit) | 10 days | RUB 11,460 |
| 37 | Receive inspection by the State Inspectorate of Architecture and Construction Supervision during foundation construction | 1 day | no charge |
| 38 | Receive inspection by the State Inspectorate of Architecture and Construction Supervision during structure construction | 1 day | no charge |
| 39 | Receive inspection by the State Inspectorate of Architecture and Construction Supervision during engineering works | 1 day | no charge |
| 40 | Receive inspection by the Union of Administrative Technical Inspection (UATI) – I | 1 day | no charge |
| 41 | Receive inspection by the Union of Administrative Technical Inspection (UATI) – II | 1 day | no charge |
| 42 | Receive inspection by Union of Administrative Technical Inspection (UATI) – III | 1 day | no charge |
| 43 | Receive inspection by the Union of Administrative Technical Inspection (UATI) – IV | 1 day | no charge |
| 44 | Receive inspection by the Union of Administrative Technical Inspection (UATI) – V | 1 day | no charge |
| 45 | Receive inspection by the Union of Administrative Technical Inspection (UATI) – VI | 1 day | no charge |
| 46 | Receive inspection by the Union of Administrative Technical Inspection (UATI) – VII | 1 day | no charge |
| 47 | Connect to water services | 30 days | no charge |
| 48* | Request and receive inspection by the Energy Supervision Board | 1 day | no charge |
| 49 | Connect to electricity and sign an agreement with Energosbyt | 14 days | no charge |
| 50* | Request and connect to telephone services | 5 days | no charge |
| 51 | Request and convene the Approval Commission | 30 days | no charge |
| 52 | Request and receive the disposition on operation of building (occupancy permit) | 10 days | no charge |
| 53 | Request and receive plans from the Bureau of Technical Inventory (BTI) | 30 days | RUB 55,000 |
| 54 | Register the building after completion | 30 days | RUB 7,500 |
54 different bureaucratic hurdles to overcome in order to build a warehouse. And it should be noted that the costs listed are the official costs only, which the authority in question can legally charge. Often before an authority will consider an application, the submitted documents must be checked and approved by a third party private company which is the only one the authority will recognise, and hence can charge what it likes. I have seen these companies charge $30k for “pre-approving” what the governmental authority charges $200 for, and it is not difficult to understand where a big chunk of this additional fee ends up. With so many authorities to satisfy the scope for corruption is enormous, and many of these approvals bodies have become industries in themselves offering lucrative careers involving little more than glossing over documents at ones leisure whilst accepting hefty backhanders either directly or via a third party company, which may or may not be owned by your brother.
This list should give you some idea of how difficult it is to build an LNG facility or an offshore platform in Russia. Construction schedules in Russia are unlike anything you would experience in the west, which is made all the more difficult by the 4-month summer construction window (where groundworks are concerned) which exists in much of Russia including Sakhalin. For the last part of 2008 I was involved with the construction of a two-storey office building, the type of which would be thrown up in six or eight weeks in the UK. It took our Russian contractor over two years to complete, and still the building is not registered. A good chunk of this time was spent sitting about waiting for various authorities to review documents, turn up for inspections, and stamp bits of paper.
If anyone wants to know why Russia remains poor despite a well educated population possessing impressive technical skills, looking at how long it takes to complete a simple construction project and what is involved is a good place to start looking.
(Doing Business in Russia – Part 1 is here.)
Ironically enough Moscow is the fastest growing Russian city despite all these 54 hurdles listed by Moscow and federal gummints.
BTW, what is the average temperature in London and Yuzhno? What are the differnces between hottest summer and coldest winter here and there? How does it affect brickwork, communications facilities, etc.?
Ironically enough Moscow is the fastest growing Russian city despite all these 54 hurdles listed by Moscow and federal gummints.
These requirements are pretty much common to all Russian cities, from what I can tell.
BTW, what is the average temperature in London and Yuzhno?
I’ve not seen any comparison between Yuzhno-Sakhalinsk and London, and I can’t for the life of me think why anyone would carry one out. However, I have seen comparisons between works in Russia and works in Canada, Norway, and Alaska and the result seems to be that the cold weather in Russia, although a genuine obstacle to be overcome, is more often a handy excuse for why something happens or doesn’t happen.
Well, in Russia the bigger the city, the faster it grows. Small towns are practically not developed, villages are commonly dying out.
Still Alaska is the backwards state, Norway’s Statoil is the government-controlled company and Canada is a bunch of leftist nuts.
“offtopic*
On the May, 12 Putin signed an ukase to abolish visas for travellers getting into Russia by ferry for a stay of 72 hours.
In case of Sakhalin the ferry comes from Hokkaido.
:>)
Well, the recent occupant of the Oval office is doing everything in his power to make the reality of Soviet bureaucracy that much closer. Alaska under Gov. Palin might prove difficult to subvert, though.
Did the Barbie cut the staff?
Or use the oil windfall to boost social programs?
I suspect the character named Khabar (or Khabarovsk, in earlier incarnations) deems deems himself sarcastic. Oh, the human folly.
Btw: you don’t need a lot of social programs when all your taxpayers have work. It makes economic sense to support capital/business/private enterprise – but only if you have your taxpayers’ interests at heart (Like Governor Palin has) – not if your interests are in “community organizing”: raising mobs of government-dependent nincompoops, as it’s beautifully illustrated by a culture of council-houses in Britain.
No sarcasm, the feeling I feel is diffult to articulate verbally due to the lack of vocabulary and liberal rights.
How come you concluded that Khabar=Khabarovsk?
A smart Jewish girl guesses for one day only.
What have you graduated from?
P.S. It would be interesting to compare living standards in Alaska and, say, Montana before Hockey Mom and now.
That’s enough with the Jewish comments, fella.
ok, no more j-words if you post anything about Alaska.
“The feeling you feel” will be much easier to articulate if you decide what is the point you want to make, Khabar. Then think it through. Then present your arguments in coherent manner. Then listen to your opponent’s countering them and respond to her accordingly, item by item. See, I’m letting you on a secret method we, Jews, used to conquer the world. Which we own, as you know.
Otherwise, everything you say just show what an imbecile scatterbrain you are, jerking his knees in all directions; a racist dummy whom nobody but toddlers would take seriously.
Pingback: White Sun of the Desert » China and Russia Do Business
pretty similar in Romania, too. Unless you know the guy who knows the guy who …
are the durations you mentioned in parallel or in sequence ?
Pingback: Kapitalets mysterium: det ryska exemplet « steuropa och Ryssland
New construction permitting laws dramatically change the way American manufacturers conduct construction activities in the Russian Federation.
In Acts of the Russian Federation, Federal Government No. 145 March 5 2007 and Feb. 16 2008, and Building Code Dec 29 2004 with later alterations, the entire State Expertize permitting process was changed to eliminate corruption and bring it more in line with Western standards. In light of these changes, your time line becomes irrelevant.
General information about the changes are available on http://www.propeum.com/EN/
Pingback: Deregulation « Cambridge University Conservative Association
Pingback: White Sun of the Desert » Doing Business in Russia – Part 3