New Land Code in Russia

10/08/2001

On September 20, 2001 the State Duma (the Lower House of the Russian Parliament) finally approved a new version of the Land Code.  According to the new Code, persons and legal entities including foreigners will have a right to own land.  The Communists strongly objected to the draft.  They claimed that land should remain a state property, and private persons and legal entities could obtain the right to use land, but not to dispose of it.

Although, foreigners will not be able to own land in some restricted areas, such as near the borders, military bases or closed cities, the law itself is another significant step toward improving the foreign investments climate in Russia that showing the West that Russia is moving in the right direction.

The Land Code is still pending approval from the Federation Council (Higher House of the Parliament) and then from the President.  As soon as the Code is officially published, we will prepare an overview of its essential provisions, especially those that are effecting foreign investors.

Yevgeniy Tregubenko
Associate, Haynes and Boone, LLP
(Licensed only in New York and Russia)

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