Austrian builder Strabag has around €150 million ($209 million) worth of construction projects frozen in Russia as clients face a financing crunch, Austrian newspaper WirtschaftsBlatt reported on Friday.
WirtschaftsBlatt quoted a Strabag spokesman as saying that the projects -- mainly commercial developments such as retail or office space -- were put on ice because its clients did not get financing, or that credit was too expensive for them. Projects in residential and industrial construction were still going very well, the Strabag spokesman said, according to WirtschaftsBlatt. Strabag’s total order backlog in Russia was €2.5 billion, he said. The spokesman could not immediately be reached for comment.
Strabag last month postponed plans to expand its cement production in Russia, citing declining cement prices. It said at the time it was important to remain flexible in the current financial crisis and to weigh investment decisions carefully. (Reuters)