No. 69. New rules for leasing property owned by the Moscow Region

20.08.2009

Goltsblat BLP advises that, on 10 July 2009, the Moscow Region passed Law No. 88/2009-ОЗ “On Leasing Property Owned by the Moscow Region”, according to which:

  • The general rule is that property belonging to the Region is leased out by tender, with the exception of cases expressly stipulated in the Law (if, for instance, the lease is for no more than 30 days);
  • If the lease agreement is concluded without a tender or a reduction factor is applied in determining the rental, the lease agreement must prohibit:
    • subletting,
    • assignment of lease,
    • provision for gratuitous use,
    • pledge of the lease rights,
    • contribution to the authorised (equity) capital of commercial companies/partnerships or a share contribution to a co-operative.
  • The maximum lease term for property owned by the Region has been reduced to 5 years.

The Law does not apply to lease of cultural heritage, land plots, bodies of water and forested sites.

The Law comes into effect on 19 October 2009.

For additional information, please contact:

Vitaly Mozharowski, Partner, Real Estate & Construction,
E: Vitaly.Mozharowski@gblplaw.com

Elena Barinova, Partner, Real Estate Investment and Finance
E: Elena.Barinova@gblplaw.com

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