On December 27, 2018, the President of the Russian Federation signed Federal Law No. 572-FZ “On Amendments to Article 17.1 of the Federal Law“ On Protection of Competition ”
Adoption of the law is aimed at uniform application of the provisions of Part 9 of Article 17.1 of the Federal Law “On Protection of Competition” in relation to all lease contracts of state or municipal property when sold by a tenant, properly fulfilling the obligations assumed, of a preemptive right to other persons to conclude a lease agreement term without bidding.
Prior to the adoption of the law, the provisions of Part 9 of Article 17.1 of the Federal Law “On Protection of Competition” created an opportunity for landlords to refuse to prolong lease agreements concluded before the entry into force of Article 17.1 (07/02/2008).
The law makes amendments providing for a single procedure for renewing lease agreements for state (municipal) property for a new term. Upon the expiration of the lease of state or municipal property concluded on the basis of or without tendering in accordance with the legislation of the Russian Federation (except when entering into lease agreements for property that is managed in accordance with the Land Code of the Russian Federation, Water Code of the Russian Federation, Forest Code of the Russian Federation, subsoil legislation of the Russian Federation, legislation on concession agreements, legislation on public-private partnership, municipal-private partnership), the conclusion of such a contract for a new term with the tenant who has properly performed his duties is carried out without a tender, auction, unless otherwise provided by the contract and the contract is not limited by the legislation of the Russian Federation, while observing the established conditions.
The law also provides for the updating of the list of contracts, the price of which can be increased by agreement of the parties in the manner prescribed by the contract, in accordance with Part 8 of Article 17.1 of the Federal Law "On Protection of Competition"