Rental Lease Relationship: Current Trends In Dispute Resolution

Recently the balance of interests in the real estate market in Russia has shifted significantly. The reason for that change is that the economic downturn caused a declining demand for commercial nonresidential premises and reduced the revenues of many market players. The low demand for office and trade premises entails reduction of rental rates. In terms of financial crisis lessees are trying to reduce their rental costs and compel lessors to decrease the rental rates due to the current market situation. In this respect the most important issue is what legal options and mechanisms are available to the parties to amend or terminate an effective lease contract.

Discussed below are some recent rulings in Russian courts regarding extending lease contracts and/or amending its terms.