Measures to Secure Tenants

On April 1, 2020, the Federal Law "On amending in certain legislative acts of the Russian Federation on the prevention and response of emergencies" introduced the following measures aimed at secure tenants of real estate:

  • In 2020, landlords will be obliged to provide tenants with determent of payment for rent within 30 days from the date of their application. The parties will have to conclude an additional agreement in connection with this matter. The terms and conditions of such delay will be additionally established by the Government of the Russian Federation.
  • At any time during 2020, parties will be able to change the amount of the rent under the lease agreement, if it was concluded before the introduction of high alert status or emergency situation in the territory.
  • The tenant has right to demand a reduction in rent for 2020 under real estate lease contracts because of the impossibility of using it because of high alert status or emergency situation in the territory.

The high alert status is valid in all 85 constituent entities of the Russian Federation from:

  • March 13, 2020 in Saint Petersburg and Leningrad Oblast.
  • March 5, 2020 in Moscow.
  • March 13, 2020 in Moscow Oblast.

The law seems to be an acknowledgement that the measures taken to secure the safety of the public will have a significant impact on small and large companies alike and strives to level the playing filed between landlords and tenants in an effort to protect jobs.   It was not the intention of the law to favor one type of business over another, but to make it clear that a dialog needs to be created between companies as the health of one’s business often is dependent on the health of one’s clients. 

Please contact experts of Emerging Markets Group for further information.