The fate of the Federation Tower business center, which was to become the tallest skyscraper in Europe, has been left hanging in the air.
A construction watchdog has ordered the suspension of work on the tower and revoked the contractor's license, after a number of technical and fire safety violations were detected.
The contractor, Mirax Group owned by businessman Sergey Polonsky, claims that the Moscow authorities are inventing a pretext to take over the company’s projects. Without a license, Mirax will not be able to obtain a bank loan and the construction process will be frozen.
The tower, located in the west of Moscow, was planned as part of Moscow City business center. The building is to consist of two three-sided towers called “East” (243 meters high) and “West” (360 meters).
Political analysts link the license revocation to Polonsky’s open letter to the Moscow mayor aimed against first deputy mayor Vladimir Resin. The letter was a reaction to the protests organized by Mirax Group’s shareolders demanding to unfreeze construction of the company’s residential estate in north-western Moscow.
The shareholders called on the city authorities to hold Polonsky responsible for misinforming them about the construction process and the company’s debts. The protestors say they gave Mirax 12 billion rubles, which, they fear, can now go to Mirax creditors or be laundered by Polonsky though a number of shell companies.
In a letter, Polonsky claimed that Resin was to blame for freezing construction.
“The deputy mayor bans development companies from doing their jobs in the capital,” Polonsky wrote.
After the Federation Tower freeze Polonsky sent the Moscow mayor two more letters, saying that it was Resin who was attempting to take over the project.
Resin’s press center replied that as soon as Mirax ends the violations, it will get its license back.
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