One should not be intimidated by the printed news, by the risks, or by the history of Russia. Rather, one should view Russia as an exciting market that is developing and will provide opportunities for cautious investors to enrich their businesses. Until very recently, the concepts of private ownership of land and the use of real estate as collateral for debt were unknown to a majority of Russian people. The laws of the Soviet Union did not recognize the concept of private land. The first significant step in the direction of creating land ownership rights was the enactment of the Land Code of the Russian Soviet Federated Socialist Republic (“RSFSR”) in April 1991. However, under the Land Code of the RSFSR, the rights bestowed upon Russian citizens were severely limited when compared to the Western concept of property rights.
Read the full article: Real Estate Transactions in Russia: New Land Code Gives Green Light to Foreign Investment