Russia Tower
Encyclopedia
The Russia Tower is a partially built skyscraper in the Moscow International Business Centre of Moscow
, Russia
. Construction began in September 2007, and was planned to be completed in 2012. The total area of the structure would cover 520000 m² (5,597,233.4 sq ft), of which 38% (approximately 200000 m² (2,152,782.1 sq ft)) would be located underground. The tower would contain 118 floors, 101 elevators, and underground parking to accommodate 3,680 cars. Commercial retail shops would be located at the base of the building. The maximum people capacity of the building was projected to be around 30,000.
Construction was halted in November 2008, in February 2009 the project was suspended, and in June 2009 the project was officially cancelled.
. It was soon moved to plot 14. In the middle of 2003 an updated 648 m (2,126 ft), 134-story design had been moved to plots 17 and 18. In January 2004, the Moscow Development Company (STT Group) was appointed as the main investor and developer of the $2-billion project.
On 18 September 2007, the building's cornerstone
was laid in a groundbreaking
ceremony.
The Russian news agency Interfax reported on 21 November 2008 that construction on the tower was to be halted. Shalva Chigirinsky
, head of the tower's development company, indicated that the credit crisis of 2008 had left him unable to secure financing for the project and had also removed demand for the tower's office space, even if the building were able to be completed.
On 3 December, Russian oil company Sibir Energy
agreed to buy a number of real estate assets, including Russia Tower, from Chigirinsky. As Chigirinsky was a major shareholder in Sibir Energy, the purpose of the purchase was to alleviate financial pressures upon him, so that he would not be forced to sell his shares in the company, and thus enable the company to preserve its existing shareholder structure. However, many analysts decried the move, arguing that such use of the oil company's capital to assist Chigirinsky by purchasing his distressed real estate assets — which had no relation to the company's core oil business — at possibly inflated prices was detrimental to the company's shareholders and constituted a significant conflict of interest
.
On 12 February 2009, it was announced that the Russia Tower will most likely not be built. The project developer's assistant stated that, "In today's economy, a project of such scale is no longer feasible for us and can no longer be justified." In place of the tower, the company proposes to use the land to build three smaller skyscrapers and a large parking garage.
In June 2009 the project was cancelled, to be turned into a parking lot for existing buildings.
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
, Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
. Construction began in September 2007, and was planned to be completed in 2012. The total area of the structure would cover 520000 m² (5,597,233.4 sq ft), of which 38% (approximately 200000 m² (2,152,782.1 sq ft)) would be located underground. The tower would contain 118 floors, 101 elevators, and underground parking to accommodate 3,680 cars. Commercial retail shops would be located at the base of the building. The maximum people capacity of the building was projected to be around 30,000.
Construction was halted in November 2008, in February 2009 the project was suspended, and in June 2009 the project was officially cancelled.
History
Russia Tower was proposed for plots 2 and 3 of the Moscow International Business Centre in 1994 as the world's tallest building; a 648 m (2,126 ft), 125-story tower. It was designed by Chicago-based architectural firm Skidmore, Owings and MerrillSkidmore, Owings and Merrill
Skidmore, Owings and Merrill LLP is an American architectural and engineering firm that was formed in Chicago in 1936 by Louis Skidmore and Nathaniel Owings; in 1939 they were joined by John O. Merrill. They opened their first branch in New York City, New York in 1937. SOM is one of the largest...
. It was soon moved to plot 14. In the middle of 2003 an updated 648 m (2,126 ft), 134-story design had been moved to plots 17 and 18. In January 2004, the Moscow Development Company (STT Group) was appointed as the main investor and developer of the $2-billion project.
On 18 September 2007, the building's cornerstone
Cornerstone
The cornerstone concept is derived from the first stone set in the construction of a masonry foundation, important since all other stones will be set in reference to this stone, thus determining the position of the entire structure.Over time a cornerstone became a ceremonial masonry stone, or...
was laid in a groundbreaking
Groundbreaking
Groundbreaking, also known as cutting, sod-cutting, turning the first sod or a sod-turning ceremony, is a traditional ceremony in many cultures that celebrates the first day of construction for a building or other project. Such ceremonies are often attended by dignitaries such as politicians and...
ceremony.
The Russian news agency Interfax reported on 21 November 2008 that construction on the tower was to be halted. Shalva Chigirinsky
Shalva Chigirinsky
Shalva Chigirinsky is a Russian businessman operating in real estate and oil sectors. He is now divorced and has six children. Shalva Chigirinsky was born in 1950 in Kutaisi to a family of Georgian Jews. He graduated from the Moscow Medical Academy. In 1987, he emigrated to Spain and later to...
, head of the tower's development company, indicated that the credit crisis of 2008 had left him unable to secure financing for the project and had also removed demand for the tower's office space, even if the building were able to be completed.
On 3 December, Russian oil company Sibir Energy
Sibir Energy
Sibir Energy is a London-based Russian public limited company, whose primary line of business is petroleum and natural gas exploration in Siberia. Its shares were traded on the Alternative Investment Market, part of the London Stock Exchange...
agreed to buy a number of real estate assets, including Russia Tower, from Chigirinsky. As Chigirinsky was a major shareholder in Sibir Energy, the purpose of the purchase was to alleviate financial pressures upon him, so that he would not be forced to sell his shares in the company, and thus enable the company to preserve its existing shareholder structure. However, many analysts decried the move, arguing that such use of the oil company's capital to assist Chigirinsky by purchasing his distressed real estate assets — which had no relation to the company's core oil business — at possibly inflated prices was detrimental to the company's shareholders and constituted a significant conflict of interest
Conflict of interest
A conflict of interest occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other....
.
On 12 February 2009, it was announced that the Russia Tower will most likely not be built. The project developer's assistant stated that, "In today's economy, a project of such scale is no longer feasible for us and can no longer be justified." In place of the tower, the company proposes to use the land to build three smaller skyscrapers and a large parking garage.
In June 2009 the project was cancelled, to be turned into a parking lot for existing buildings.