Leningrad OFAS made a lawful decision to abolish an auction for forest land lease

Cassation Court supported OFAS in a case on forest land lease in the Podporozhie District, the Leningrad region.

Judicial proceedings between theantimonopoly body and the Natural Resources Committee of the Leningrad region took place after OFAS had investigated a complaint from “AYu Partner” Ltd. in March 2016. The Commission of Leningrad OFAS established that the auction organizer had not had the right to auction in separate lots a forest plot with a single cadastre number.  In the opinion of the antimonopoly body, the Committee first had to delimitate the plot and then execute cadastral registration of each part.  OFAS decided to abolish the auction for lease of the lots in question.

The Committee disagreed with the decision of Leningrad OFAS and filed a lawsuit, substantiating that the plots are included in the State Forestry Register.  The Arbitration Court of the North-West District ascertained that registration with the Forestry Register cannot substitute the State Cadastre registration. The Cassation Court emphasized the importance of cadastral registration of real estate items because it excludes possible discrepancies in the registered data, which minimizes conflicts between the title-holders. The Committee failed to present any documents confirming cadastral registration.

Deputy Head of Leningrad OFAS, Alexander Zhuravlyov, commended the OFAS decision:  “Before 1 January 2017 forest plots could be provided as forest estate lands without State Cadastre registration only for the purposes of using forests for the works on geological survey of subsoil resources and development of mineral deposits. In the case in question, however, the forest plots were leased for logging, so the Committee had not right to lease these forest plots as having no cadastral registration”. 

The Cassation Court agreed with the violations in the actions of the Natural Resources Committee of the Leningrad region, exposed by Leningrad OFAS and upheld the decision of the antimonopoly body. A relevant OFAS press-release states:  “The dispute on forest land lease is not over yet. Leningrad OFAS has filed a claim on invalidating a contract concluded by the Committee with “Lesplitinvest” OJSC for lease of a forest plot in Boxitogorsk District, the Leningrad region”.

Head of Leningrad OFAS Alexander Pleteshkov pointed out: “Another judicial examination on forest plot lease ended in favour of Leningrad OFAS. Therefore, in 2016 Courts confirmed our rightness in all disputes in this sphere. In 2017 we will strengthen control over allocation of state property and resources”.