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26 December 2017 Connecting Shopping Centres to Roads

Legal Update No. 624

Goltsblat BLP advises that amendments have been adopted to the Federal Law “On Roads and Road Activities...” of 8 November 2007. They regulate the requirements on and the procedure for connecting shopping centres covering over 10,000 sq.m. to roads (Federal Law No. 390-FZ of 5 December 2017, “Amendments”).

The amendments are designed to improve the throughput of roads when permanent shopping facilities covering over 10,000 sq.m. (“Shopping Centres”) are connected to them. To this end, Shopping Centres will be subject to the same requirements as roadside facilities are at the moment. For example, they will have to be equipped with car parks, slip roads and junctions and meet mandatory junction approval and construction provisions.

Specifically, the following requirements will apply to Shopping Centres:

  • They must be equipped with parking lots and stopping places, access and slip roads;
  • They will be connected to roads under technical conditions issued by the road owner and a connection agreement signed therewith;
  • When signing a connection agreement, the road owner will have to inform the other party (parties) of any planned road reconstruction or overhaul and their timing;
  • Shopping Centre junctions, slip roads and speed-change lanes will be constructed, reconstructed, maintained and repaired by the Shopping Centre owner at its own expense;
  • Reconstruction of or repairs to Shopping Centre road junctions will require the road owner’s consent, setting out the technical requirements and conditions for such repairs;
  • Shopping Centre junctions may only be constructed, reconstructed or repaired subject to the road owner’s consent and in line with the technical conditions and requirements. Otherwise, such construction, reconstruction or repairs must be stopped and the junctions be dismantled. Such violations might also be deemed grounds for demolishing the Shopping Centre itself.

Importantly, developers/ right holders will have to pay a fee for Shopping Centre road connection. The connection fee will be based on the cost of the road owner’s connection services under the connection agreement, as prescribed by state authorities and municipalities.

Connection services provided by federal road owners are currently divided into:

  • Basic services – processing applications for technical conditions, visits by the road owner’s specialists to monitor the work; and
  • Extra services – mobile laboratory services, changing and prolonging existing technical conditions.

The price of such services is subject to annual indexation and depends on the distance from the road owner’s structural unit to the junction construction site. Another price factor is where the work is carried out relative to the road (shoulder / highway dedication). In 2017, the basic service price is from RUB 37,500 to 60,600.

The Amendments have secured established practice in relation to construction approval and maintenance of junctions. They are primarily designed to streamline connection of Shopping Centres to roads and ease traffic jams at connection points.

The Amendments came into force on 16 December 2017. They do not apply to Shopping Centres commissioned before this date; these are only subject to maintenance requirements on their access routes, slip roads, junctions and parking lots.

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