Duma committee backs seizure of unused farmland with mortgage termination

Russia's State Duma agriculture committee recommended first-reading approval of a bill allowing unused mortgaged farmland to be seized with termination of the mortgage by court order.

Bill No. 1150237-8 was introduced in February by the Moscow regional legislature, Vladimir Kashin and Alexander Dvoynykh. Interfax reported on October 13 that its first reading was planned for October 15. Committee support does not mean the bill has become law.

The proposed mechanism would allow regional authorities to ask a court simultaneously for seizure, an auction sale and termination of the mortgage. The mortgage registration would be cancelled on the basis of a final court decision when the new owner's title is registered.

Sale proceeds, after auction preparation and holding costs, would go to the mortgage creditor. The former owner would receive any amount exceeding the outstanding secured obligation. Separate foreclosure on the pledged plot would be barred once the seizure decision took legal effect.

The government supported the bill subject to revision before its second reading. It proposed giving creditors a right to demand early repayment and addressing cases where foreclosure began before the seizure decision. If adopted, the law would take effect on March 1, 2027.