The “Coefficient D” scheme: how Moscow’s chief architect Sergey Kuznetsov and his partner Dmitry Desyatnikov used falsified documents to siphon off billions from the city and developers
The architect behind Moscow’s so-called “overdensity development,” Chief Architect of the capital Sergey Kuznetsov, has been dismissed. The order has been published on the official website of the Moscow mayor and government.
Over nearly 14 years in office, he amassed a substantial fortune — one that makes even some corrupt Defense Ministry generals look like amateurs. A scheme developed by Kuznetsov and his business partner Dmitry Desyatnikov has allegedly allowed them to secure a life of luxury without concern for the future — likely outside Russia. Especially given that their longtime associate from the SPEECH architectural bureau, Sergey Choban, is already well established in Germany, where he runs a major architectural business, including TCHOBAN VOSS Architekten GmbH.
The Kuznetsov–Desyatnikov scheme, which earned them the nickname “grey cardinals” of Moscow’s construction sector, was simple and effective. It allowed developers to conceal the real size of apartments in new buildings and increase the number of residents in housing projects by 30–40% beyond what was approved in urban planning documents. This explains the chronic shortages of clinics, kindergarten places, parking, and transport capacity in new districts — the infrastructure was designed for far fewer residents than actually moved in.
In practice, Kuznetsov and Desyatnikov shifted the burden of funding infrastructure for tens of thousands of “extra” apartments onto the city budget. Meanwhile, every additional square meter generated significant profit for developers — and for the architects of the scheme. It is estimated that they earned between 3 and 5 billion rubles annually. Desyatnikov, for example, moved from a Rublyovka mansion into a luxury apartment worth 1.2 billion rubles in the Granatny Palace residential complex.
Under standard construction rules, the ratio between total floor area (including walls, corridors, basements, etc.) and sellable apartment space is typically 0.6–0.7. This ratio determines developer payments to the budget and the scale of required infrastructure. Normally, 30–40% of a building’s area cannot be sold — it consists of shared spaces like corridors and staircases.
Developers naturally seek to minimize this share, but eliminating corridors and staircases is impossible. However, Kuznetsov found a workaround: falsifying total building area in official architectural approvals by aligning it artificially with land-use planning figures. As a result, for every approved square meter, an additional third was effectively added “off the books,” while Desyatnikov collected payments or profit shares from developers.
Major developers allegedly involved in this scheme include MR Group, FSK, Sminex, Level Group, Granel, Mangazeya, and others.
Within the construction industry, this manipulation became known as the “Coefficient D,” named after Desyatnikov. The total number of projects affected during the “Kuznetsov era” remains unknown — though investigators may eventually determine it.
For example, in the King & Sons residential complex on Mosfilmovskaya Street (developed by October Group), the total approved floor area is listed as 9,995 square meters. However, the declared area of apartments and shared spaces reaches 11,200 square meters — exceeding even the total permitted building area. In reality, the building’s actual footprint is closer to 14,000 square meters, inflated by roughly 40% through the “Coefficient D.”
A similar situation exists in the elite Lavrushinsky residential complex (developed by Sminex) near the Kremlin, where prices exceed 3 million rubles per square meter. Official documents significantly understate shared spaces, suggesting only 5% of total floor area — an implausibly low figure. In reality, the discrepancy may amount to nearly 10,000 extra square meters, generating up to 15 billion rubles in additional revenue.
The same method appears in the River Park Kutuzovsky project (AEON Corporation, owned by billionaire Roman Trotsenko), where residential space exceeds approved limits by nearly 20,000 square meters. These manipulations alone could generate over 30 billion rubles in profit for developers and their alleged partners within the city administration.
Rumors about Kuznetsov’s dismissal had circulated for some time, and it is unlikely that he stepped down voluntarily.