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. Last Updated: 07/27/2016

Ministry Urges Lower Rates for Urban Land

In draft proposals to the Cabinet, the Economic Development and Trade Ministry has reduced buyout rates for land under privatized enterprises.

The acreage rates vary widely, depending on the size and population of a city and the potential tax revenues of a region.

The ministry has also proposed extending the buyout deadline from 2004 until 2007, according to Deputy Minister Andrei Sharonov.

The base rate will be multiplied by a regional coefficient ranging from 20 in Moscow to 10 in St. Petersburg, 7 in Tatarstan and Samara and 1 in the group of regions with the lowest tax revenues, which includes Kamchatka, Magadan, Chechnya and Sakha.

In Moscow, four widely differing rates have been set: 7,838 rubles ($256) per square meter inside the Garden Ring; 2,799 rubles between the Garden Ring and the Third Ring Road; 559 rubles between the Third Ring Road and the Moscow Ring Road, and 279.9 rubles beyond that.

"The Moscow government has not seen these proposals yet," Sharonov said.

The top rate outside Moscow -- 9.07 rubles per square meter -- is proposed for cities with a population of more than 3 million people. The proposed acreage for cities with between 1 million and 3 million people is 6.06 rubles, while for cities with between 500,000 and 1 million people the rate is 5.31 rubles.