There has been a mad scramble in recent years among many investors from western countries to buy Russia agricultural land. In Russia, an ideal land for an investment project is usually public. This makes acquisition difficult even for Greenfield projects. The only alternative for an investor to buy land in Russia for construction purposes is through tender or auction. On the other hand, a prospective investor can bank on the authorities for allocating land for future use. There is no other way an investor can go about buying land in Russia even though many have tried to exchange land in their possession for public land. Courts rule out any such moves by investors.
There is a Land Code of the Russian Federation which mandates availability of land only on the basis of identification of a location for construction purposes. The process can be tedious and there is no guarantee of getting approval within a specified period of time. From the time Vladimir Putin came to power, the Russian government allegedly bulldozed private investors who got too big for their boots. According to the Superior State Arbitration Court of Russia, violation of a procedure in the Land Code is considered invalid. This has made it difficult to get public land for investment purposes alone despite assurances from local authorities.
Russia land is easier to acquire if it is farmland. Over the last few years, there has been a surge in buying in the Black Earth region stretching from Ukraine to central Russia. Many European companies have bought agricultural land in this region since agriculture fared poorly and farmland acquisition evaded the scanner of authorities. This, might not last long as food bills are going up and farmers are struggling to keep up with the demand for food. The prices of wheat and grain have also shot up in recent years.
The demand for Russia land for sale offers has gone up the world over because they are cheap. There are agencies in Russia that lobby with media, lawyer firms and government agencies to help prospective clients get the best deals. The land availability varies and could be from 100-150 kms from Moscow to the Russia-China border regions. By investing in fertile Russian land, investors can benefit from the booming agricultural sector.