Work has halted at the Gazprom headquarters in St Petersburg, Moscow, following intervention from Russian President Dmitry Medvedev.
Medvedev said the proposed 400m-high skyscraper was too tall for the historic city of St Petersburg.
The move is in line with the UN’s cultural organisation UNESCO, which claims the skyscraper will destroy the city and has threatened to remove the city from its world heritage list.
The project team said the height of the skyscraper would be rethought and that the tower would be built but would be located outside St Petersburg, according to earthtimes.org.
The €1.3bn ($1.6bn) glass arrow-shaped skyscraper had been planned to be complete in 2016.