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Russia: Federation Council Passes Historic Land Code
By Francesca Mereu
Russia's upper house of parliament yesterday gave final approval to a bill
lifting a ban on the sale of land that was one of the last vestiges of the
Soviet economic system. RFE/RL Moscow correspondent Francesca Mereu looks at
the reaction of Russia's different political factions to the new Land Code.
Moscow, 11 October 2002 (RFE/RL) -- On 10 October, Russia's upper house of
parliament, the Federation Council, easily passed (103 votes to 29, with nine
abstentions) a bill that permits limited sales of land. The State Duma, or
lower house, overwhelmingly approved the new Land Code in the last of three
readings last month.
The Land Code -- which received strong support from Russian President
Vladimir Putin, who is expected to sign it soon -- does not apply to
farmland, which is due to be addressed in a future bill.
The Kremlin hopes that the current legislation will boost economic reforms
and attract foreign investment. The absence of workable land legislation has
been one of the largest deterrents to foreign businesses and is blamed for
slowing Russia's economic development. Until now, land sales had been
regulated by the country's local legislatures using a complex and sometimes
archaic system of laws.
Despite the pro-Kremlin leanings of the Federation Council, yesterday's
parliamentary debate over the Land Code did not go smoothly. The bill was
strongly opposed by the Communist and Agrarian parties, who argued the bill
would allow foreigners and wealthy Russians to buy up Russian land. In fact,
the new Land Code affects only about two percent of Russian land.
Alexander Nazarchuk, the leader of the Agrarians in the Altai regions, said
he was concerned the new bill would legitimize all illegal land sales made
before the bill was passed. He also said the bill would leave Russia's
forests wide open to purchase and exploitation: "Why are we in such a hurry?
Let's sit down and try to find an agreement. This code makes it possible not
only to [build on] land but also to privatize our woodlands. This is what you
all are voting for."
Mikhail Odinzov, a lawmaker from the Ryazan region, said that the Federation
Council's political factions should support the president's will despite any
differences over the Land Code: "It is impossible for those who support the
advantages of private property and those who are against it to come to an
agreement. [But we should remember that] when we voted for [Putin], he said
he would back both private property and a market economy. Now we have to
decide: Are we with the president's policy or against it?"
Russia's 1993 Constitution allows Russians to buy and sell land, but
parliament has traditionally been reluctant to pass legislation that would
put that right into effect.
Russia's minister for economic development and trade, German Gref, called the
Land Code a big step forward for Russia's economy. He says it will prevent
the black market from profiting unduly from the sale of land. He said such
"shadow sales" cost the Russian government between $1 billion and $2 billion
a year:
"First of all, the bill will prevent the black market [from taking revenues
from land sales]. When you have 10,000 percent of [revenues] that come from
the sale of land, we can say that land-sale revenues are comparable to those
from drugs and arms sales and from different black-market businesses. This
bill will prevent these kinds of things. [Now] these revenues [can] go to
municipal and regional budgets."
Moscow Mayor Yuri Luzhkov criticized the Land Code's price restrictions on
land occupied by public city facilities. But the mayor said he would have
voted for the code despite his objections, saying it would contribute to the
more active use of land and boost investor confidence.
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