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The "Kommersant" publishing house business brunch on the subject of "Real Estate Law. New Legal Mechanisms."

The event was attended by representatives of both the business community - Andrew Ivakin, Renova Group, Valentin Borodin, Brandi Partners, Anastasia Pomelova, VTB Arena Park, and the expert organizations - Denis Novak, HSE, Maxim Perov and Anton Shchukin, Genplan Institute of Moscow as well as the newly appointed head of the real estate department of the Ministry of Economic Development (MED), Mikhail Bocharov.

The main topic of the discussion was the changes to the Land and Urban Planning Code of the Russian Federation, that take effect from 1 March 2015, which substantially change the order of provision of land, including the land for construction; it will also include the introduction of a mechanism for a sharp increase in rent for the land provided by municipal authorities, the authorities of Moscow and St. Petersburg for construction on the expiration of a two-fold normative construction term.

During the discussion, many participants, including representatives of the Genplan Institute of Moscow, said that the proposed MED mechanism of agreements on integrated land development does not fully implement the set tasks and goals, places unlimited responsibilities on the developers on the construction of engineering and transport infrastructure, directly interferes with the achievement of the objectives of the President of the Russian Federation for increasing mobility of the working population, and does not correspond to the concept of the reform implemented by the Civil Code.

Anton Shchukin's presentation addressed the topic of introduction of building leasehold institution to the Civil Code – the right of physical and legal persons to build an object of capital construction with certain parameters and permitted use on a plot of land owned by them and operate it. It was noted that the proposed changes to the Civil Code consider the building leasehold as the highly specialized relationships arising during development of state- and municipally owned land plots by private persons.

Maxim Perov highlighted the issue of the consequences of application of the new land legislation rules. While municipalities worldwide are actively fighting for investments and the influx of population, Russia proposes a construction fee for the construction of social, engineering and transport infrastructure to be payable by buyers of property. This will lead to stagnation in construction in most regions of the country.

In general, the discussion aroused interest in the audience, and as a result, it went quite lively, despite the early hour.

 

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