Important changes introduced to the Russian Town-Planning Code

In July 2021 a number of important changes were introduced to the Russian Town-Planning Code (the Town-Planning Code). Some of these changes are aimed at the unification of construction rules at the federal level in the Town-Planning Code. Most likely the changes were made in order to simplify construction related procedures and to limit the possibility of changing these procedures by the adoption of by-laws and/or normative acts of Russian regions or municipalities.

Below is the summary of the key changes.

1. Federal law dated 1 July 2021 No. 275-FZ "On the Introduction of Amendments to Certain Laws of the Russian Federation" (Law No. 275-FZ)

The amendments introduced by Law No. 275-FZ entered into force on 12 July 2021 (other than certain changes which come into force on later dates as set out below).

1.1. The introduction of a unified list of construction related procedures (the List)

Prior to the introduction of the List in the Town-Planning Code the Russian Government had issued a number of lists of construction related procedures (for example, in relation to the construction of residential and non-residential buildings and certain types of engineering networks) which are currently effective.¹ The construction procedures are also governed by the laws of Russian regions and municipalities. The List replaces these lists and procedures.

In compliance with the amendments, the Russian Government shall approve exhaustive lists of documents, data, materials and approvals required to fulfil the procedures set out by the List. The amendments expressly provide that authorities of any level are not permitted to request from developers any approvals, documents and data not contemplated by the List.

The procedures referred to in the List are to be fulfilled by parties involved in construction projects including developers, construction managers (technical customers) and competent authorities. Further, the List includes the following key milestones for development projects: (i) the formalization of land use rights; (ii) the approval and issuance of documents, materials and data required for engineering surveys and design; (iii) the process of undertaking engineering surveys and design; (iv) the construction and putting into operation of constructed properties; and (v) the cadastral registration and state registration of title to these properties. 

The amendments enter into force on 1 September 2021.

1.2. The inclusion of a definition of "working documentation" in the Town-Planning Code

Prior to the amendments, the term "working documentation" was defined in Resolution of the Russian Government No. 87 dated 16 February 2008 which determines the content of design documentation. Considering the importance of working documentation for each construction project, the lack of provisions in the Town-Planning Code dealing with working documentation was clearly a gap which has now been filled.

According to the Town-Planning Code (as amended) design documentation is documentation setting out architectural and technical solutions to facilitate the construction while working documentation is documentation pursuant to which the construction is to be undertaken. Although working documentation shall be prepared on the basis of design documentation, the Town-Planning Code permits both types of documentation to be prepared simultaneously. Further, the Russian Government is entitled to determine the composition and content of working documentation.

The Town-Planning Code permits amendments to working documentation without requiring simultaneous amendments to the design documentation (and without expert review) provided that the relevant amendments (i) if they were to be made to the design documentation would not be subject to expert review in accordance with the Town-Planning Code (sections 1-5 of part 3.8 of article 49 of the Town-Planning Code); and (ii) are approved by a developer and a construction manager (technical customer).

Only design documentation is subject to expert review and the designers of the design documentation must be members of approved "self-governed' organisations.

1.3. The introduction of provisions on a standard design documentation (Standard Documentation)

The concept of Standard Documentation was introduced to the Town-Planning Code in order to increase the efficiency (cost-wise and time-wise) of the construction of standardized development projects. The Standard Documentation replaces the previously existing concept of "economically efficient and repeatedly used design documentation" which could be used only in projects implemented by State or municipal authorities or legal entities owned by the State by more than 50% (State Entities).

Design documentation may be qualified as Standard Documentation and included in the unified state register of expert conclusions in respect of design documentation (Register of Expert Conclusions) under the decision of a competent authority provided that the following requirements are met: (i) in relation to design documentation a positive conclusion of a state expert review has been obtained; and (ii) properties constructed in accordance with this documentation have been put into operation. The Russian Government will establish (i) criteria for the qualification of design documentation as Standard Documentation, (ii) the term and order of the use of such documentation (including the introduction of amendments thereto), and (iii) the grounds for exclusion of Standard Documentation from the Register of Expert Conclusions.

Standard Documentation may be used for the design of analogous properties (ie properties of similar purpose, design capacity, place where properties is intended to be constructed) by any developer.  

If intellectual property rights to Standard Documentation belong to the Russian Federation or a Russian region or municipality, (i) State Entities may use it for free; and (ii) other persons or entities may use it on the conditions established by the Russian Government.

If intellectual property rights to Standard Documentation belong to a party other than the Russian Federation, a Russian region, or municipality, an interested person or entity would be entitled to obtain from the Register of Expert Conclusions information about the relevant intellectual property right holder and commence negotiations with such rights holder in order to obtain the right to use the relevant Standard Documentation.

The amendments enter into force on 1 October 2021.

1.4. The introduction of a "single window" regime for expert reviews of design documentation

The general position is that design documentation for the construction is subject to state or non-state expert review. In addition to this, ecological or historical-cultural expert review may be required depending on the specifics of a project.

Under the amendments to the Town-Planning Code, the Russian Government is entitled to introduce a "single window" regime for various expert reviews. If such regime is introduced an applicant would be able to apply once to the relevant authority or organization which would undertake the required expert review and also redirect the relevant design documentation to other authorities and organisations for the undertaking of other expert reviews.

1.5. The change to the requirements of a technical plan

The preparation of a technical plan by a certified cadastral engineer is a mandatory condition for putting newly constructed properties into operation. Following the amendments, design documentation is no longer to be attached to a technical plan. At the same time, the technical plan shall include (i) a reference to the relevant design documentation in accordance with which the relevant properties have been constructed, and (ii) certain technical parameters from the design documentation.

These amendments significantly limit the ability of the Federal Service for Registration, Cadastre and Cartography (Rosreestr) to review and assess design documentation. In particular, Rosreestr would only check whether parameters of constructed properties comply with those referred to in a construction permit without checking the underlying design documentation.

2. Federal Law dated 1 July 2021 No. 276-FZ "On Amendments to the Town-Planning Code of the Russian Federation and Certain Laws of the Russian Federation" (Law No. 276-FZ)

Law No. 276-FZ amends the norms of the Town-Planning Code governing connection of real estate properties to utilities supply networks (Networks). The amendments to large extent duplicate Resolution of the Russian Government dated 13 February 2006 No. 83 which sets out the rules on the obtainment of technical conditions for connection of real estate properties to Networks and the rules on the connection to Networks. Most likely one of the purposes of the amendments is to incorporate these rules into the Town-Planning Code.

2.1. The establishment of rules on connection to Networks

The Town-Planning Code is supplemented with provisions on the connection of real estate properties to Networks. Following the amendments, the technical conditions of connection shall be annexed to a Networks connection agreement to be entered into between a developer and the right holders of the relevant Networks. The technical conditions should be valid for at least three years and in case of a complex territory development, no less than five years.

2.2. The introduction of rules on a complex scheme of utilities supply for a particular territory

The competent authorities will now be able to approve a complex scheme of utilities supply for a particular territory (комплексная схема инженерного обеспечения территории) (Scheme). The Scheme needs to be approved by the right holders of the Networks located on the relevant territory. The Scheme could be prepared as a part of the materials for the preparation of a project of territory planning (проект планировки территории). The composition and the content of the Scheme is to be determined by the Russian Government.

2.3. Other amendments

Law No. 276-FZ also introduces the following amendments:

• the right holders of real estate properties connected to Networks become entitled to reduce power capacity and assign the capacity which is no longer needed to third parties; and
• town-planning plans (градостроительные планы) shall include information about the possibility of connection of real estate objects to Networks.

Law No. 267-FZ enters into force on 1 September 2021.

¹ See Resolution of the Russian Government No. 452 dated 14 April 2017, No. 346 dated 28 March 2017; No. 403 dated 30 April 2014 , No. 1138 dated 7 November 2016.