Subsoil use: use of valuable and specially protected forest and the procedure for acquiring them for state and municipal needs.

06.09.2011

Legal Update No. 272.

Goltsblat BLP advises that the following provisions have been stipulated by Federal Law No. 222-FZ dated 18 July 2011 On Amendments to the Federal Law “On Subsoil“ and Article 8.2 of the Federal Law “On Enactment of the Russian Federation Forest Code“: land plots will be acquired from land owners, users, holders, and occupiers for state and municipal needs on the basis of applications from subsoil users and relevant positive rulings. The Russian Federation Government will establish the procedure for drafting and considering applications and issuing rulings in relation to the land plots acquired for subsoil use.

It is anticipated that, once the provisions come into effect (19 January 2012), there will be more cases of land being acquired for subsequent subsoil use.

Now, according to the Law, valuable and specially protected forests can be used to construct, reconstruct, and operate capital structures if they are meant for geological exploration and development of raw hydrocarbon deposits for which subsoil use licences were issued before 31 December 2010 and for the period not exceeding their validity period. These provisions came into effect on 22 July 2011.

For additional information, please contact:

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

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

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