On June, 8th the State Duma approved in the first reading the draft law “On sea ports in the Russian Federation” introduced by the group of deputies (Prime-Tass).

It is meant to regulate the legal relationships arising from the activities in the sea ports, including construction, operation and reconstruction of their infrastructure facilities.

The draft law draws demarcation line between the sea port as a property complex and the companies, rendering services in the port. The structure of the port administration includes captain’s office, providing safety of navigation and discipline in the sea port.

The draft law sets the legal framework of the utilization of the land plots and surface water bodies. It also envisages private, state and public forms of property for the land plots.

It also sets private property ban for foreign citizens, people without citizenship and legal entities. Other infrastructure facilities of the sea port can be in state, public property or in property of individual entrepreneurs and legal entities.

This draft law determines the full list of infrastructure facilities of the sea port, which are now the federal property and withdrawn from commerce.

The draft law sets the procedure of leasing the land plots and entering lease and investment agreements regarding the infrastructure facilities of the sea port, included in the federal property.

At the same time the State Duma rejected the alternative draft law “On sea ports of the Russian Federation” introduced by the government of the Russian Federation. The draft law is meant for regulation of functioning and development of the sea ports, providing of state management and administrative powers in the ports, performing handling operations.

The draft law envisages formation standards, regulations on giving the title, opening of the port, registration of the data on sea ways by registering them.

Main documents determining the development of the sea ports are land planning layout of Russian Federation with regards to the development of the sea ports and land planning design for the sea ports.

The draft law determines goals and means of the state regulation of the activity in the port and sets administrative functions to be performed by the administration of the sea port headed by the Harbour Master. It also lists all the property owned by the state and not to be transferred to the private or public property (berths, piers, bank protection structures, ice-breakers, special lifeguard vessels, access roads, used for the work of several sea terminals, property meant for functioning of the state authorities and etc.) and sets the lease or concession terms for this property.

The above assets are allowed to be in private property only if they were built for own or borrowed funds of private investors.

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