It is necessary to complete the construction of housing in the regions of the South Federal District damaged by floods, by the middle of October 2002, Russian Prime Minister Mikhail Kasyanov said opening a meeting devoted to restoration activities in the regions of the South Federal District damaged by floods. He pointed out that according to the data of the State Construction Committee, there were 12,588 homes, which could not be repaired. However, only 25 new homes have been built as of today.

The Prime Minister pointed out that a part of the damaged regions would compensate lost housing by buying it on the secondary market. "We have a month and a half at best to complete necessary activities for solving these problems", Kasyanov emphasized. He added that the state would allocate RUR2.2bn (about $69.72m) for financing these activities.

According to the Prime Minister, the Finance Ministry has already been assigned to release a corresponding loan. On the whole, Kasyanov pointed out that according to a recently signed decree, the total amount of resources for building new housing in nine regions of the South Federal District had been increased to RUR6.5bn (about $205.99m).