Supreme Commercial Court: Public Procurement Law Not to Apply to Real Estate Acquisitions

24.01.2013

Legal Update No. 404, 24 January 2012

Resolution No. 5128/12 of 25 September 2012 of the Presidium of the Russian Supreme Commercial Court (the SCC) expressly states that Federal Law No. 94-FZ of 21 July 2005 “On Public and Municipal Procurement of Goods, Work and Services” (the Law on Procurement) is not applicable to public acquisitions of real estate. Public requirements are not covered by the Law on Procurement, which only applies to three types of deal: supply of goods, work and fee-based service contracts. The Court has explained that public acquisitions of real estate should be regulated by the provisions of the Russian Civil Code regarding real estate sale and purchase agreements (paragraph 7, chapter 30).

This decision of the SCC brings final closure to the contradictory court practice that has existed for many years on this matter. It also refutes the viewpoint of the Russian Ministry for Economic Development, as stated in its Letter No. Д05-600 of 06 February 2009. The Resolution of the SCC has retroactive effect with respect to reconsideration of similar cases on which contrary rulings have been issued in the past.

If you have any question or would like more detailed information, please contact: Vitaly Mozharowski, Partner, Real Estate & Construction, Goltsblat BLP, by phone +7 495 287 44 44, or by e-mail Vitaly.Mozharowski@gblplaw.com; or Yuri Chernobrivtsev, Partner, Real Estate & Construction, Goltsblat BLP, by phone +7 495 287 44 44, or by e-mail Yuri.Chernobrivtsev@gblplaw.com; or Maxim Popov, Associate Director, Real Estate & Construction, Goltsblat BLP, by phone +7 495 287 44 44, or by e-mail Maksim.Popov@gblplaw.com.

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