The Civil Code was initially developed in the early 1990s, but the new draft that appeared at the beginning of 2012 has been widely debated since then. After lengthy discussions, the draft was approved by the State Duma in the first reading, but as the process goes forward, the reaction is becoming ever more heated. Thus, endless disputes and controversies are continually arising. The next (second) hearing was postponed four times and will hopefully take place on Dec. 14, 2012.
Investing in the emerging Russian market is certainly a challenge for any business: Not only are the systems overcomplicated, but the rules of the game change at short notice, such is the attraction that the idea of changing the market quickly and efficiently holds for the Russian authorities.
Despite the obvious advantages for owners of commercial real estate to engage management companies, the issues inevitably arise of apportioning liability and potential risks between an owner of a building and a management company and of how to reduce these risks.