On October 7, 2009 the State Duma of the Russian Federation adopted in the first reading the draft of the Federal law on amending legislation regarding land plots. It is supposed that articles 2 and 3 of the Federal law “On Enacting the Land Code of the Russian Federation” and article 7 of the Federal Law “On Amending Legislative Acts of the Russian Federation with Regard to Elaboration of Terms and Procedure of  Acquisition of Rights to Land Plots Which Are in the State or Municipal Ownership” will be amended.

We would like to draw your attention to the most significant proposed amendments :

1. It is supposed that the term of re-registration by the business entities of their right of permanent (perpetual) use to land plots will be prolonged for 3 years: until January 1, 2013 (current legislation establishes that business entities are entitled to re-register their right of permanent (perpetual) use to land plots until January 1, 2010).
   
2. It is supposed that the term of re-registration by the business entities of their right of permanent (perpetual) use to land plots located under power transmission lines, communication lines, pipelines, roads, railway lines and other similar constructions will be also prolonged for 3 years: until January 1, 2016 (current legislation establishes that business entities are entitled to re-register their right of permanent (perpetual) use to land plots located under the mentioned constructions until January 1, 2013).

The reasonableness of prolongation of re-registration of the right of permanent (perpetual) use is explained by lawmakers in view of international financial and economic crisis where the buy-out of state and municipal land plots located under pieces of real estate in private ownership will result in loss of liquidity by most of the industrial facilities, even in case of purchase at reduced price established by legislation.

Adoption of the Federal law will help the business entities which have not re-registered the right of permanent (perpetual) use of land plots in 2009 to re-register their rights until January 1, 2013.