Early February it was reported Moscow City Council decided to speed up work on the tower but reduce its height to just 200 meters. Luzhkov had told investors in Moskva-City that he wanted progress this year, following warnings in December that many buildings would be delayed beyond 2010. The complex of 20 buildings between 17 and 34 floors was originally scheduled to be completed by 2012.

Mirax Group, a top five developer publicly offered to buy Russia Tower in mid-February from Chigarevsky at the same price he had offered it to others and build it to the full 612 meters, 134 floors, designed by London’s Foster & Partners. Mirax owner Sergei Polonsky told reporters that the company had rolled over $317 million in debt, including a $200 million loan from Credit Suisse. Polonsky had announced an asset sale including a yacht, a Cote d’Azur home and a Turkish hotel.

Polonsky said he was ready to buy Chigirinsky’s stake in the Russia Tower project for $43.5 million.

Mirax is in the process of completing construction on the Federation Tower skyscraper complex of two towers – the East and West towers of 506meters and 242 meters respectively, located near the Russia Tower site in the Moskva-City business district.

Meanwhile Okhta Tower, the controversial new headquarters for Gazprom Neft in St Petersburg is going ahead after Gazprom has committed to funding the 396m tower independently. Originally conceived as a joint project between the city government and Gazprom, St Petersburg’s governor Valentina Matviyenko reacted to the credit crunch by suspending funding for the Centre in November.

The project comprises a 400-metre high tower having the shape of a flame that resembles the logo of Gazprom; three podium buildings as well as massive underground structures and special external works.

The tower’s design inspiration came from the concept of energy in the water, as exemplified by St. Petersburg’s River Neva, the ever changing nature of water’s light; reflections and refractions can be seen in the renderings. The building’s five sides will “twist” as they reach for the sky.

But it’s not all show- the Okhta Tower will be a green tower inside and out. The “exoskeleton”, dubbed as low energy ‘fur coat’, will consist of two layers of glazed glass ‘skin’ with atrium between inner and outer walls. This buffer zone will supply the building with natural ventilation, sunlight for interior lighting and at the same time will act as a thermal insulation by keeping the structure warm during fierce minus 30 degrees Russian winters.

UK-based architectural firm RMJM was given the green light to build the eco skyscraper which promises to be “one of the most environmentally sustainable high rise buildings in the world,” according to the RMJM.

Arabtec Construction of Dubai, owned by Arabtec Holding, the UAE’s only construction company publicly listed, has won the construction contract believed to be worth over $2.5 bn. A start up team was reported to be on site in February.

After consultations with the market, two 2009 commercial real estate trade events the Saint-Petersburg Awards and Federal Awards both organised by Commercial Real Estate magazine of Impress Media in Moscow will hold a combined celebration ceremony in June. The event, in St Petersburg, will unite results of both Jury Committees and although the awards ceremonies are delayed from March the organizers say the selection process for participants, nominees and winners will take place in accordance with the original schedule.

Jones Lang LaSalle has released a report on the industry’s prospects authored by Vladimir Pantyushin, JLL’s Head of Research which says the majority of under-construction projects will be completed, albeit with delays but planned projects will be postponed. “Expect a “pause” in 2011-2012, which will again push markets towards undersupply.”

The significant role of financial companies and foreign tenants, particularly in Moscow will slow recovery in the office market. To limit rental adjustments, landlords are offering other incentives such as lower indexation, longer rent-free periods, partial fitout compensation, according to the report.

Predicting a gradual yet steady recovery the report predicts stronger fundamentals in Russia will bring the recovery earlier and make it faster than in other European markets. The authors expect the economy to stabilize towards mid-2009 with the real estate sector following with a delay of 6 to 9 months.