The Russian Federation (together with the Ukraine) imprisons the greatest proportion of children and teenagers in Europe. There is recognition at the top that this system does not work, and there is pressure to keep young offenders out of the seriously overcrowded institutions. However, as yet, there is no official alternative to address offending behaviour. St Gregory’s Foundation works in partnership with the St Basil’s Centre for Social Rehabilitation in St Petersburg. This NGO runs a small-scale, intensive residential course, which is fully supported by the local juvenile courts due to its successful work with young offenders. There is no official re-offending rate for young offenders, however it is estimated at over 50% and is likely to be much higher. The rate amongst those who have graduated from the St Basil’s rehabilitation course is below 20%. The course addresses issues such as: taking responsibility, social and communication skills, and re-entering education or employment. When the young men graduate from the course they are able to join a youth club, which helps cement the changes in their lives by providing a healthy social life and ongoing support. However, some course graduates are unable to return to their families due to their parents’ alcohol or drug use, mental health problems, or a family history of abuse. The need is particularly great since there is a serious housing shortage in St Petersburg. Without a secure home maintaing a positive change in life style is very difficult. St Basil’s Centre hve been given the use of a flat for a nominal rent, on condition that they renovate it. This will be turned into a hostel with four places. Graduates of their course will be allowed to stay for up to nine months if they are over the age of 18 and indefinitely if they are under 18. In addition there are two “crisis beds” for short term stay. The flat is made up of a living room, a dormitory, a small room for the supervisor, a kitchen and bathroom. The living space available is comparable with general Russian housing conditions, and the flat will be markedly more comfortable, clean and safe than the options open to the poor. A local bank agreed to pay for the labour and we have already financed some of the materials. However, part of the work has been financed by a charity loan at low interest. 200 000 Roubles (£5,000) is needed to repay the loan. In addition 200,000 Roubles (£5,000) is needed to furnish the flat ready to accept the first residents early in 2009. This project is relatively small-scale, but we believe that the time is right for such models to influence both the authorities and wider society. We would be very grateful for any help.