“On Amendments to Articles 2 and 3 of the Federal Law ‘On the Entry into Force of the Russian Land Code’ and Individual Legislative Acts of the Russian Federation”

Pepeliaev Group hereby informs that:

• Federal Law No. 351-FZ “On Amendments to Article 3 of the Federal Law ‘On the Entry into Force of the Russian Land Code’ and Individual Legislative Acts of the Russian Federation” was adopted on 27 December 2009;
• Federal Law No. 342-FZ[1] on extending the term for re-registering rights of permanent (indefinite) use of land plots was adopted on 27 December 2009.

1. Prior to the adoption of the relevant amendments introduced by Federal Law No. 351-FZ, legislation stipulated that in the absence of the requisite territorial planning documents and rules on land use and site development, the following would be prohibited from 1 January 2010:

(i) the granting of state or municipally-owned land plots for construction purposes;

(ii) the issue of construction permits;

(iii) the adoption of decisions to reserve and confiscate land plots for state and municipal needs;

(iv) the adoption of decisions on the transfer of land plots from one category to another.

As a number of constituent entities of the Russian Federation and local governments failed to develop, approve and adopt by 1 January 2010 territorial planning documents, and also rules on land use and site development, the entry of said restrictions into legal force was deferred until 1 January 2012.

2. Federal Law No. 342-FZ extends until 1 January 2012 the deadlines for:

(i) the re-registration of a legal entity’s rights with respect to permanent (indefinite) use of land plots or the acquisition of title to such land plots by these legal entities; and

(ii) the acquisition of state and municipally-owned land plots by the owners of real estate properties located on such land plots at prices established by constituent entities of the Russian Federation.[2]

Moreover, the law establishes that legal entities may re-register their rights of permanent (indefinite) use of land plots, on which transportation, communications and utility lines are located, into the lease of such land plots or acquire the title to such land plots before 1 January 2015.[3]

In connection with the deferral of the deadlines, the liability for late re-registration of the right of permanent (indefinite) land use stipulated by the Russian Code of Administrative Offences shall apply from 1 January 2013.[4]