Lease agreements with companies associated with unfriendly countries

The Ministry of Finance has agreed on a draft of federal law, according to which the owners of premises are offered:

-  to bring lease agreements to an early termination with companies from unfriendly countries;
- to collect rent for the period of suspension of activity in the amount of no less than the average rent for 2021.

o   If the lessee is under the jurisdiction of an unfriendly country, then the lessor has the right to demand payment of rent in the amount of the average monthly rent for 2021 or from January 2022 to February 2022 (if the use of the premises began in January 2022)
o   If the amount of rent is set as a share of the lessee's revenue, then the lessor has the right to unilaterally terminate the lease agreement (if the lessee does not resume using the premises or does not pay the rent to the lessor within 10 days from the date receiving appropriate requirement)
o   If the lessee suspended economic activity, which led to a significant* reduction of rent or part of it

* by more than 50% compared to the same period in 2021

-  The lessee will continue to work under a different brand
- Establishing control over the lessee by a Russian legal entity or a citizen of Russia

Court practice

Meanwhile, litigation has already begun to appear on the recovery of rent, losses, termination of agreements with the lessee associated with unfriendly countries:

·         the Moscow City Arbitration Court partially satisfied the claims of «Amusement Park» LLC to «H&M» LLC and recognized the preliminary lease agreement terminated, recovered 537 million rubles of unjustified enrichment from the lessee (the decision did not enter into force);
·         the Moscow City Arbitration Court accepted the claim of «Prosperity» LLC to «PULL & BEAR CIS» LLC for the recovery of 4.1 million rubles of debts, fines under the lease agreement;
·         the Moscow City Arbitration Court accepted for a proceeding the claim of «Hartney Enterprises» LTD to «MASSIMO DUTTI» LLC for the recovery of 141, 1 million rubles of debt and penalties;
·         «Tsvetnoy Central Market» LLC appealed to the Moscow City Arbitration Court with a claim for recovery of 72 million rubles from «Adidas» LLC (the claim has not yet been accepted for the proceeding).