President Vladimir Putin signed a decree abolishing the Federal Agency for Special Construction (Spetsstroy), according to the Kremlin website.
The functions and 200 employees of Spetsstroy are transferred to the Ministry of Defense, while the government is tasked with ensuring the continuity of the agency's functions.
Kommersant announced plans to liquidate the agency at the end of November; it was stated that eight state unitary enterprises would be created instead of Spetsstroy.
“This eliminates intermediate links and intermediaries in the implementation of government construction contracts, will ensure that the work is carried out primarily by our enterprises and reduces the number of management personnel by half,” Defense Minister Sergei Shoigu explained a month later.
The newspaper wrote that claims against Spetsstroy arose due to the collapse of a barracks in Omsk, which resulted in the death of 24 military personnel. It is alleged that there were initially plans to seriously reform the agency, but later it was decided to liquidate it.