The State Duma Allowed Entrepreneurs To Terminate Lease Agreements Unilaterally

The state Duma of the Russian Federation has adopted in the third and final reading a bill regulating rental relations during high-alert regime.

The adopted law allows small and medium businesses from the list of sectors affected by coronavirus to prematurely terminate lease agreements before October 1, 2020 and not to compensate for losses in the form of lost profits.

You can terminate the contract under these conditions if the owner of the premises refused to reduce the rent. At the same time, the Deposit (security payment) made by the tenant will not be returned to him.

Initially, it was assumed that the right to unilaterally terminate lease agreements without fines and compensation for losses this year will be granted to all companies (not only small and medium-sized businesses) whose incomes have decreased by more than 50% after the introduction of the self-isolation regime. At the same time, the landlords had to return the security payment to them, if it