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Company / Power

Amendments to certain legislative acts to enhance property support of subjects of small and medium enterprises

Vladimir Putin has signed the Federal law "On amendments to certain legislative acts of the Russian Federation in order to increase property support of subjects of small and average business".

Federal law passed by the State Duma on 21 June 2018 and approved by the Federation Council on 27 June 2018.

I

the Federal law provides for the establishment of a perpetual right of redemption of the leased state and municipal property and the creation of opportunities for land use in the provision of property support to subjects of small and average business.

According to the Federal law the Federal Executive authorities, Executive authorities of constituent entities of the Russian Federation, local governments approve lists of the state property and municipal property, free of rights of third parties (with the exception of the right of economic management, right of operational management, and property rights of subjects of small and average business). This property is used to provide its possession and (or) use on a long term basis (including under preferential rates of a rent) to subjects of small and medium-sized businesses and organizations forming infrastructure of support of subjects of small and average business, and can also be transferred on a reimbursable basis in the property of subjects of small and average business. At the same time state and municipal property fixed on the right of economic management or operative management of state or municipal unitary enterprise on the operational administration right for the state or municipal Agency, can be included in these lists of state and municipal property with the consent of the state authority of the Russian Federation, public authorities of subjects of the Russian Federation or local government body authorized on approval of the transactions with the appropriate property, for the purpose of providing such property to possession and (or) in using to subjects of small and medium business and organizations forming infrastructure of support of subjects of small and average business.

the Subjects of small and average business renting land plots, listed in the schedules of state and municipal property, shall not be entitled to transfer its rights and obligations under the lease contract of the land plot to a third party, including to give lease of land in pledge and to contribute them as a contribution to authorized capital of economic partnership or a company or share contribution in a production cooperative and also to transfer the leased land in the sublease.

by bidders for the right to conclude a lease of land included in these lists of state and municipal property, can be only the subjects of small and average business, confirmed their status by providing information from the unified register of subjects of small and medium enterprises or statements in a form approved by the Federal Executive authority responsible for drafting state policy and legal regulation in the sphere of development of entrepreneurship, including small and medium businesses. Participants in this auction can't be the subjects of small and average business in respect of which cannot be a material help in accordance with the Federal law of 24 July 2007 № 209-FZ "About development of small and medium entrepreneurship in the Russian Federation".

In accordance with the Federal law, the lease of land included in the above list of public property or a list of municipal property, may be discontinued at the request of the Federal Executive authority, Executive authority of subjects of the Russian Federation, body of local self-government.

the Federal law expanded the powers of state authorities of the Russian Federation and bodies of state power of subjects of the Russian Federation on development of small and medium-sized businesses.