Simplified Land Compulsory Purchase in Moscow and the Moscow Region

17.04.2013

Legal Update No. 418, 17 April 2013

Goltsblat BLP advises that Federal Law No. 43-FZ of 5 April 2013 “On Regulatory Specifics with Respect to Certain Relations Resulting from Absorption of Territories into the Federal City of Moscow, and on Amendments to Certain Legislative Acts of the Russian Federation” (the “Law”) has been adopted.

Essentially, the Law introduces a simplified procedure for compulsory purchase of land and other real estate for state needs, provision of land for location of federal and regional significance facilities on the territories absorbed into Moscow on or after 1 July 2012. This procedure applies to location of facilities of federal and regional significance, i.e. developing the engineering, transport and social infrastructure and other state objectives. Lists of such facilities are to be approved by the Russian Government (for federal significance facilities) and the Moscow Government (for regional significance facilities).

Moreover, the special procedure for real estate reservation and compulsory purchase , state cadastral registration and state registration of rights will apply to the entire territory of Moscow and the Moscow Region in relation to siting the following facilities:

  • facilities listed in paras 5 and 10 of sub-clause 2, clause 1, article 49 of the Russian Land Code (federal transport facilities, transport facilities of regional significance, engineering infrastructure),
  • transportation hubs.

In particular, the term for notifying the real estate owner of condemnation is five months (in accordance with the general rule stipulated by the Russian Civil Code, it is one year), and for approving an agreement for real estate compulsory purchase — three months (the general rule does not regulate this). Please note that, from the perspective of establishing the special procedure for land and other real estate compulsory purchase for state needs, easements, specifics of state cadastral registration and state registration of rights to real estate, the Law resembles, to some extent, Federal Law No. 310-FZ of 1 December 2007 “On Organising and Holding the 2014 XXII Winter Olympic Games and XI Winter Paralympic Games in Sochi, Developing Sochi as a Mountain Climate Resort and Amending Certain Legislative Acts of the Russian Federation”.

The special reservation and compulsory purchase procedure established by the Law will apply until 1 January 2020.

Moreover, the Law contains provisions that do not relate directly to development of the territories absorbed into Moscow. For example:

  • In accordance with article 22 of the Law, a decision to change the permitted use of a privately owned land plot in Moscow to one allowing construction and/or reconstruction of a capital structure will be made on the basis of the owner's application, subject to a relevant payment being made for changing the permitted use of the land plot. The amount, terms and procedure for such payment are to be stipulated by a Moscow regulatory act.
  • Article 24 of the Law permits owners of land plots in Moscow to acquire neighbouring, vacant, publicly-owned land plots for the purposes of operating buildings and structures located thereon without tenders and advanced approval of the facility location, in accordance with the approved draft boundary surveys.

Nearly all the provisions of the Law come into effect on 19 April 2013.

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 Maksim 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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