Dagestan authorities have begun reclaiming land plots from investors who breach contractual obligations by failing to launch or complete agreed-upon development projects. Regional governor Sergei Melikov announced this measure at the recent regional development meeting, confirming that agreements for several stalled projects had already been terminated and the corresponding land returned to state ownership.

The initiative specifically targets investors who made no tangible progress—neither initiating construction nor commencing any form of development—despite holding rights to valuable land assets. Melikov instructed regional authorities to establish a clear, step-by-step enforcement protocol. Under the proposed framework, investors in violation will first receive a grace period to remedy shortcomings. Should they fail to act, financial penalties will be imposed and in persistent cases, contracts will be fully annulled.

The Head of Dagestan strongly condemned practices in which businesses acquire land, exploit regional resources and generate no economic results—particularly by avoiding tax payments and failing to create promised jobs for local residents. Melikov also denounced schemes involving the resale of land plots or unauthorized subleasing without any real investment or development, vowing swift reviews of all suspicious or non-performing agreements.

At the same time, the top official highlighted several successful investment projects as models of transparent and mutually beneficial cooperation.