As a follow-up to the government's earlier measures to support the economy in the context of the COVID-19 pandemic, on April 07, 2020, the Russian Government approved the rent-free period rules for organizations and sole proprietors from the most affected sectors of the economy.
This measure was implemented by approving at the legislative level of imperative rules for commercial real estate landlords obliging them to grant until 01.10.2020 a deferral for lease payments. The beginning of the deferral period shall be defined by the moment of introduction of a high-alert or emergency regime in each region of the Russian Federation.
The law requires from landlords to enter into an additional agreement within 30 days from the moment of the tenant's request to grant a grace period for the duration of a high-alert or emergency regime (excluding utility and maintenance fees) and – after the removal of the high-alert or emergency regime – to provide a 50% discount on lease payments until 01.10.2020. The additional agreement shall also comply with the requirements set forth by the Decree of the Government of the Russian Federation of 03.04.2020 N 439:
∙ the accrued debt repayment shall not start earlier than January 1, 2021;
∙ installments shall be of equal amount and not more frequently than once a month;
∙ the amount of one payment can’t be more than half of the monthly lease fee under the initial agreement.
As support for landlords, regional and municipal authorities are recommended to provide landlords who have granted a deferral, with support measures in terms of paying property tax, land tax, and rent for the land on which the property is located.