New Rental Rates for Federal Land Plots Allocated for (Occupied by) Gas Pipelines.

07.04.2011

Legal Update No. 230.

Goltsblat BLP advises that Order of the Ministry for Economic Development of the Russian Federation No. 9 dated 14 January 2011 established rental rates for land plots owned by the Russian Federation and allocated for (occupied by) gas pipelines or other pipelines used for similar purposes and their structures. The Order will come into effect on 08 April 2011.

Rental rates per square metre of a land plot vary depending on the constituent entity of the Russian Federation (e.g., the rental rate for the Leningrad Region is established at 0.27 roubles).

The Order prescribes the procedure for determining the rental when concluding land plot lease agreements starting from 2012. To determine the rental rate for the first year, the rate provided for by the Order must be increased by the inflation rate for the period starting form 2012 inclusively. The rate is to be calculated as of 1 January of the year in which the lease is concluded. The inflation rate is to be determined in accordance with the federal legislation on the federal budget for the relevant financial year and for the planning period.

For additional information, please contact:

Vitaly Mozharowski, Partner, Real Estate and Construction, Goltsblat BLP
T: +7 (495) 287 44 44,
E: info@gblplaw.com

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