Belarus terminates Itera’s Minsk City construction contract
, a Russian development company, has lost a contract within one of the largest construction projects in Belarus – Minsk City – after the local authorities ended the cooperation between the parties, according to a report in Kommersant
The contract was cancelled after Itera’s management approached the Belarusian authorities with doubts about Minsk City’s profitability. The construction of the Minsk City residential and business neighbourhood was initially expected to make a profit of $1.7bn (€1.3bn). However, Itera’s calculations suggest that a reduction in demand for rental space in Minsk will lead to losses of $300m (€223m).
The project was started in 2007 and involves the construction of 3.5 million m² of residential, office, sales, and hotel property.