Russian President Vladimir Putin has signed the Federal Bill on Deals on Agricultural Land, the Press Service of the Head of State reported. The State Duma adopted this bill on June 26, and the Federation Council approved it on July 10 of this year.
This document regulates the relationships dealing with ownership and use of agricultural plots of land and respective transactions. It sets rules and restrictions applicable to deals on plots of land and land shares in commonly owned plots.
In accordance with the new law, regions of Russia are entitled to set the minimum area of agricultural land plots. The total area of such agricultural land plots shall not be less than 10% of the total area of agricultural land within a respective region.
Foreigners are banned from owning agricultural land in Russia. Foreigners, persons without citizenship and legal entities where foreign shareholders have more than 50% of the shares are entitled only to rent agricultural plots of land.
The term of a rental agreement on an agricultural plot of land cannot exceed 49 years. Plots of land owned by the state or municipalities can be sold to individuals and legal entities at auctions. A renter can buy a rented plot three years after the conclusion of the rental agreement on the condition that this plot is in use.
An owner of shared property is entitled to give away, sell or mortgage his property share, to contribute this share to authorized capital, as well as to entrust it to a trustee as a part of a shared property.
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