The Constitutional Court of the Russian Federation issued a ruling in the case of Karier Primorsky, emphasizing that courts must consider subsequent changes to a land plot’s category when determining compensation for soil damage.
The company began sand extraction on agricultural land before completing its reclassification to industrial land, citing a valid subsoil use license. However, the Rosselkhoznadzor (Federal Service for Veterinary and Phytosanitary Surveillance) argued that the license did not authorize extraction activities on agricultural land without prior reclassification. The appellate court awarded damages of 115 million rubles for degradation of the fertile soil layer.
Disagreeing with the decision, the company appealed to the Constitutional Court, asserting that the current legislation fails to account for such specific cases. The company argued that the compensation rules do not consider subsequent reclassification of the land into industrial use and the presence of a land reclamation project, resulting in punitive rather than compensatory measures.
The Constitutional Court clarified that land reclassification is only valid after an official decision by an authorized body. Until then, any activities contradicting the land’s current status constitute a violation. However, the Court emphasized that when adjudicating such cases, courts are required to consider changes that have occurred by the time a ruling is issued.
If the land’s category has been reclassified and the removed fertile soil layer has been preserved for reclamation, the court may reduce the compensation amount or exempt the company from liability altogether.
Thus, the Constitutional Court confirmed that a company, even after completing all steps within its control, is not permitted to begin excavation until the land’s category has been officially changed by the relevant authority. Nevertheless, the subsequent reclassification of the land and preservation of the removed soil layer for reclamation may serve as grounds for reducing or dismissing liability.
The applicant’s case is subject to review.
The law firm “Nadmitov, Ivanov & Partners” provides legal advice on environmental and land law matters, as well as legal issues in agriculture and mineral extraction.
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