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Russia's Duma Approves Crucial Land Code

Reuters, July 14, 2001

MOSCOW (Reuters) - Russia's parliament on Saturday backed a crucial land code bolstering President Vladimir Putin's reforms by overturning a Soviet-era ban on land sales.

Approval of the second reading of the legislation, fiercely opposed by the Communist Party and their Agrarian allies, was the final measure of the State Duma or lower house's spring session during which many laws promoted by Putin were passed.

The State Duma plowed through more than 140 amendments to the code, with liberals and pro-government parties fending off Communist attempts to scuttle the legislation.

The code, under discussion for seven years in post-Soviet Russia, does not concern farmland, a highly sensitive issue in a country once subject to forced collectivization.

It must now be approved on a third reading, considered a formality, at the Duma's autumn session. It will then be submitted to the Federation Council (upper house) and signed into law by Putin.

The bill roused the fury of Communists who denounced the 1990s sell-offs of industry, some at knock-down prices, under ex-president Boris Yeltsin. They feared the law would lead to the country being bought up by foreigners and wealthy Russians.

``He (Putin) is resolving in the same way the issue of land which we have defended with our blood for thousands of years,'' Communist leader Gennady Zyuganov said during the debate. ``You cannot watch this dreadful scene without shaking in disgust.''

Zhores Alferov, Nobel physics prize winner and a Communist member of parliament, urged the chamber to think hard.

``We are about to pass a law which will have worse consequences than Chubais's privatisation,'' he said, referring to the head of Yeltsin's privatisation plan, Anatoly Chubais.

Certain other categories of land, like forests, would also be subject to restrictions. Current holders of small plots and country homes will be able to purchase a single piece of land.

Foreigners's rights to buy land

Much of the final debate focused on the right of foreigners to buy land, with deputies heeding a warning from Economic Development Minister German Gref to keep such restrictions to a minimum.

Under the provisions adopted, foreigners will be able to buy land except in areas such as border regions that will be defined by presidential decrees. They will also be entitled to lease land.

``Such provisions will make Russia a more attractive place for investors and facilitate economic growth,'' Gref, the bill's chief proponent, was quoted as saying by Itar-Tass news agency.

Liberals had sought a quick passage of the measure despite Communist vows to ask the Constitutional Court to declare the sitting illegal.

``This bill is simply too important for us not to pass it,'' said Vladimir Lukin of the liberal Yabloko party. ``It is linked to the sort of country we want to have.''

The debate opened after the latest in a series of scuffles outside the Duma's central Moscow building. Dozens of communists held up banners and eggs and stones flew through the air.

Under Yeltsin, the Duma failed three times to pass a law overturning a communist-era ban on land sales. The current bill was approved at its first reading in June after debates in which members came to blows and Gref was prevented from speaking.

Putin clearly wants key economic bills passed before he attends the G8 summit of industrialized countries this month in the Italian city of Genoa.

The Duma, working under pressure from the Kremlin and the government, had passed other pieces of legislation on Friday.

These included the passage on the first reading of three bills from a pension reform plan, which the deputies wanted to postpone but had to consider after a stern warning from the Kremlin.

A bill on money laundering, passed on a third and final reading, sought to boost Russia's efforts to escape a blacklist of states fostering the movement of criminal cash. Putin also secured the easy passage of legislation on currency liberalization.

Also passed at the session were a law on its second reading overhauling Soviet-era criminal procedures for prosecutors and courts and another on its first reading redefining the labor code.

July 14, 2001

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