A step towards meeting business halfway. Smolny has proposed a draft law to extend a lease of land plots without a bidding procedure / Delovoy Peterburg
Smolny has proposed amendments to the Land Code allowing for a lease of land plots to be extended without a competitive bidding procedure being held. At present, such lease agreements, even with good faith lessees, are terminated once their term expires. The lessees are deprived of their buildings and are ordered to participate in a bidding process under the general procedure.
Arina Dovzhenko, Counsel of the Real Estate & Construction Practice at Borenius Russia, gave her comments to Delovoy Peterburg regarding the current situation involving the extension of a lease agreement for a land plot for a business that has not finished the construction of a facility before the term of the lease of the plot has expired.