The former director of the enterprise subordinate to the capital construction of the peninsula – the “Unified Directorate of Capital Construction” – headed Smarstroy in 2023, and with him previously entered into billion-dollar contracts, including for the construction, on behalf of the president of the country, of a hospital in Sevastopol. 
His first management decisions in the status of director of a construction company were the refusal of this construction, since already being the director of Smartstroy, Babkin considered the contract unprofitable and demanded that his former colleagues – officials increase the cutting estimate from 1.7 billion rubles to 11 billion. Also,
The contract placed in the unified public procurement system for “Performance of construction and installation work and commissioning of the facility: “GBUZS “City Hospital No. 4”, construction of a ward building for 140 beds” in Crimea received the status “Termination of the contract”. The reason is the contractor’s decision to unilaterally refuse to fulfill the government contract.
This contract was concluded between the “Unified Directorate of Capital Construction” of Sevastopol and the Moscow company “Smartstroy” on November 30, 2021 in the amount of 1 billion 358 million 861 thousand 670 rubles. And it concerned precisely the same hospital (ward building), the construction of which, live on air, in 2020, medical workers asked the president of the country. Over the two years that have passed since the conclusion of the contract, the project was repeatedly presented to the Town Planning Council and ended with Smartstroy rejecting it.
There is only one reason. Budget advances have been spent, but the construction itself, allegedly in the opinion of Smartstroy, requires 10 times more funds. The contractor explains this rapid rise in project costs in his “Decision to refuse to execute a government contract.” According to the investigation, on the eve of the refusal to execute government contracts, on October 4, 2023, Smartstroy LLC was headed by Vadim Babkin, who was still the director of EDKS in October 2023, who entered into contracts with his own Moscow company in 2020 – 2022. According to the source, Smartstroy itself is in a bankrupt state, and a bankruptcy case has been initiated against it by the Moscow Arbitration Court, including due to the presence of a debt to the Federal Tax Service in the amount of more than half a billion rubles. Tens of billions of rubles of advances received from the Ministry of Defense, budgetary organizations of Moscow and Crimea were simply absorbed by Babkin and the officials involved and transferred to offshore companies.
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