Tag Archives: penalties

GUZR calls for restructuring of permanent use

Panteleev, Aleksey.  “GUZR [Head administration of land resources] calls for restructuring of permanent use” (“GUZR prizyvaet pereoformit’ ‘bessrochku’”), Kommercheskie Vesti, 2 June 2010. 15 July 2010 http://kvnews.ru/archive/2010/jur21(947)/farm/14198/.

Update on restructuring of permanent (perpetual) use lands: 30% of Omsk enterprises [mostly small industrial enterprises] hold lands under permanent use.  Adds that in Omskaya Oblast until January 1, 2012, enterprises using land on which they own facilities, equipment, etc. can buy-out the land at a rate of 2.5% of its Cadastral value.  After that date, fines of 20 to 100 thousands rubles can be imposed, though at the federal level, considerations are being made to tighten these measures.

Also: “Perpetual use coming to an end.” Russian Real Estate, 9 August 2010. 16 July 2010 http://www.1rre.ru/news/doc/35747/.  On publication date, 80% of Omsk Oblast’s permanent (perpetual) users had been either been restructured as proprietors or renters, according to the GUZR of Omsk.

Russian administration plans to nullify land category divisions

“Administration of Russia plans to introduce nullification of land category divisions” (“Pravitel’stvo Rossii planiruet provesti otmenu deleniya zemel’ na kategorii”), World Heritage Sites, 2 March 2010. 27 July 2010 http://rpmira.org/news/468.

Explication of new legislative reforms, which will most notably end land classifications (i.e. agricultural; urban; industrial; special reservations; forest reserves; water reserves; land reservoir).  The goal of the new law is to decrease the pressure of bureaucratic corruption in land transactions and rezoning processes.  The 52 items amending current legislation should go into action in 2011.  In place of the complicated system of land categories, a Ministry of Economic Development representative says, the structure of allocated use for land plots will be strengthened through renewed territorial planning and city zoning plans.  The law will also impose penal tax rates for enterprises sitting on unused state lands, which administrators hope will push these enterprises to either use or dispose of the lands, removing the burden of “blocked lands,” which otherwise would be well utilized.

Another aim of the legislation is to increase transparency of land transactions and accessibility: information about available plots will be posted on the land Cadastre’s new online database, and all land will be required to be sold at auction.  The distribution of permissions to build on land should be simplified, and will be overseen by the administration.

Amendments and additions to laws in December 2009

“Amendments and additions to laws in December 2009,” Metrkv.ru: Vsya Nedvizhimost’ Rossii. December 2009. 28 June 2010 http://metrkv.ru/articles/index.xml?&articles_id=10336016.

Cataloguing of amendments made by the Duma in December 2009. On December 27, 2009, the deadline for the restructuring of lands held under permanent (perpetual) use was extended to January 1, 2012, and for lands on which electric, telecommunications, pipe, etc. lines are located, the deadline is now January 1, 2015.  However, the changes also include another extension: the date after which fines may be imposed upon firms that have not restructured their land holdings is now Jaunary 1, 2013, meaning enterprises that do not meet the 2012 restructuring deadline may only be fined at least a year later.  De facto, the original Edinaya Rossiya proposal (see above) was upheld.

At the end of May, Duma to consider amendments to Land Code

“Dragonov: At the end of May, Duma will consider amendments to Land Code,” Edinaya Rossiya, 19 May 2009. 28 June 2010 http://www.edinros.ru/text.shtml?7/9830,.

Report on the Edinaya Rossiya party website on proposed amendments to the 2001 Land Code, regarding provisions that require firms to restructure their land holdings as leases or private property by January 1, 2010.  The party cites support for the changes from the industry, property, and land-issues committees.  The proposed extension on the deadline would be for 3 years until Jan. 1, 2013 (for lands under electric, telecommunication, pipe, motorway, and train lines, 6 years until Jan. 1, 2016).  Gosduma representatives calculate this will allow proprietors to “composedly (spokoyno)” make the required changes.

“In the opinion of [Valeriy] Dragonov,” vice-chair of the Duma Committee on Industry, “the deadline extension for the restructuring of these lands is one of the important steps to the comprehensive support of homeland industry.”  The party seems to view their postponement of short-term costs of land privatization (or restructuring as a lease) as a supporting Russian industry.

Perpetual land – for three years

Vasil’eva, Yuliya. “Perpetual land – for three years: Business asks to postpone the buy-out deadline for land plots to Jan. 1, 2013” (“Zemlya bessrochno – na tri goda”), Rossiiskaya Biznes-gazeta 692, 3 March 2009. 1 July 2010 http://www.rg.ru/2009/03/03/zemlya-vikup.html.

Summary of the history and current state of the Land Code amendments; stresses business’ desire to privatize/restructure their land use, but inability to do so due to bureaucratic barriers and high buy-out prices.  Power-mongering and super-control of the restructuring procedures on the part of local powers also complicate the conditions in which businesses were being required to buy-out their land.   The decrease in businesses’ liquid funds due to the crisis—funds that would be needed for land transactions—also increases the hardship.

In addition to these issues, RSPP department head Irina Kotelevskaya notes the lack of a “good register of land territories” as another complicating problem.  In the federal Duma’s Committee on Property, “it has been noted that in crisis-time conditions, with the increase in the price of credit and the insufficiencies of working capital at many industrial enterprises, the direction of significant monetary resources towards the organization of the buy-out of land plots might just lead to a worsening of their financial situation all the way to near-bankruptcy.