Provisions Regulating Road Tolls Are Clarified

10.02.2014

Legal Update No. 452, 10 February 2014

Federal Law No. 438-FZ "On Amendments to Article 22 of the Federal Law “On Concession Agreements”, the Federal Law “On Highways and Highway Activities in the Russian Federation” and certain legislative acts of the Russian Federation" (hereinafter "the Law"), dated 28 December 2013, came into effect on 10 January 2014.

The Law establishes that a concession agreement with respect to a toll road or road with toll sections should, inter alia, contain a clause setting the maximum toll to be paid for vehicles and relevant indexation rules.

The above maximum road toll should be determined by the decision to sign a concession agreement and may not exceed the limit set in consideration of the significance of the particular road (federal, regional or inter-municipal or local) by the Russian federal government, by a supreme executive government body of a constituent entity of the Russian Federation or local government bodies, respectively.

This condition may only be changed by the parties subject to an appropriate decision by the Russian government (if the concession is granted by the Russian Federation), government body of a constituent entity of the Russian Federation (if by a constituent entity of the Russian Federation) or municipal government body (if by a municipality), provided that the Russian federal legislation, that of constituent entities of the Russian Federation or regulatory acts of municipal authorities contain rules affecting the concession holder, substantially depriving it of the benefits to which it was entitled when signing the concession agreement.

The Law also clarifies that the methods for calculating the tolls for use of federal, regional or inter-municipal, or local public toll roads or toll sections of such roads (excluding ones built or reconstructed under concession agreements) and the maximum toll are subject to approval by the Russian federal government, a supreme executive government body of a constituent entity of the Russian Federation or local government authorities, respectively.

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