New Lease Terms for Cultural Institutions

New Rules have been adopted by a resolution of the government of the Russian Federation which says that cultural institutions can make agreements to lease state or municipal property without bidding.

It has been established that cultural organizations whose property is under economic control or operational management can create lease agreements for such property without holding bidding auctions in the following cases:

  • catering organizations employed to create the necessary conditions for organizing catering for visitors and the workers of cultural organizations;
  • legal entities and individual entrepreneurs carrying out retail trade with souvenir, publishing, and audiovisual products corresponding to the objectives of the cultural organization.

The rules additionally stipulate that an essential condition of the contract is the prohibition of subleasing the property and its use for purposes not provided for by the legislation to provide protection from competition.

The Russian government has laid out the conditions for creating such agreements.  The content of the organizations' applications is explained and the timeframes for performing the necessary procedures are indicated.

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