The tower's development company froze the project and halted construction in November 2008, suspended it in February 2009, and officially cancelled it in June 2009.

Russian news agency Interfax reported on 21 November 2008 that construction on the tower was to be halted.

[3] On 3 December 2008, the Russian oil company Sibir Energy agreed to buy a number of real estate assets, including Russia Tower, from Chigirinsky.

As Chigirinsky was a major shareholder in Sibir Energy, the purpose of the purchase was to alleviate financial pressures upon him, so that he would not be forced to sell his company shares, which would in turn enable the company to preserve its existing shareholder structure.

"[11] In place of the tower, the company proposed to use the land to build three smaller skyscrapers and a large parking garage.

[12] In June 2009, the project was officially cancelled, to be turned into a parking lot for existing buildings.