EEA FP: the place of processing (out of country)

We have applied for EEA FP for my 86 y.o grandfather to join us in UK. We applied for FP in visa centre in Saint Petersburg (Russia). My understanding that it would be processed in Russia by UKVI post, and within a very short period of time. Instead, I receive the following email today from UKVI in Sheffield

"Your online application has been received in Sheffield, UK. Your application is currently being prepared for consideration by an Entry Clearance Officer"

and

"Please note that UKVI aims to complete all Visa applications within 15 working days and all Settlement Visa applications within 12 weeks of the application date. If it is not possible to complete your application within this timeframe a member of our team will contact you to explain why".

Can you please suggest (1) why it is processed in UK and (2) does it have implication for the processing time?! Thank you