KRT and Seizure for State Needs: what property owners risk and how to protect their interests
Download the guide as PDFFrom a shortage of city land to the KRT program
Moscow's rapid development over the past two decades has left the city short of land for public and commercial construction projects. New metro stations, rail depots, the constant growth of the road network, housing for residents relocated under the renovation program — all of these projects require free land within the city limits. But what happens when that land doesn't exist?
The Moscow government came up with its own solution: the urban redevelopment program (KRT). Its declared goal is to clear the city's "rust belt." Within a given district, the authorities identify a territory — land plots, buildings and structures — that they consider inefficiently used by their owners, and invite the owner to carry out redevelopment of that territory in line with the city's vision. If the owner cannot or will not carry out the KRT program independently, the city seizes the property with monetary compensation — the inviolability of private property gives way to state needs, which, under the Civil Code of the Russian Federation and the Land Code of the Russian Federation, entitle the authorities to carry out such a seizure.
What city authorities call urban renewal is, for an ordinary property owner — whether it's a garage in a co-op, a warehouse, or a shopping center — a sudden event that usually means losing their property rights.
Point-based seizures
For a specific object — a metro station, a street — the authorities seized individual land plots, one at a time, infrequently.
Comprehensive urban redevelopment
Seizure of entire territories under the KRT program — the count runs into the hundreds of orders a year, and growing.
seizure orders for real estate issued and carried out by the Moscow government over the past 5 years — the vast majority related to KRT.
property owners faced seizure for state needs in just the first 7 months of 2026 alone — half of them disagreeing with the procedure or the compensation offered.
total compensation recovered for owners whose interests were represented, pre-trial and/or in court, by GRITUM LAW FIRM lawyers.
Roadmap: KRT stages for property owners
The KRT decision is made
City authorities define the project boundaries and approve the redevelopment decision. From this point it's essential to check whether your property falls within the perimeter and to start documenting its condition and value.
Owners are notified
Owners receive notice of seizure or of the right to join the project on other terms. At this stage it is critical to properly assess the proposed terms and not miss procedural deadlines for objections.
Valuation and compensation negotiations
The property is valued to determine the compensation amount. Owners may commission their own independent valuation and challenge the proposed figure before signing any agreement.
Litigation, if necessary
If no agreement is reached, the seizure and the compensation amount are decided in court. A solid evidence base and a well-built legal position matter most at this stage.
Receiving compensation or a new property
The final stage — receiving monetary compensation or an equivalent residential or commercial unit, depending on the chosen option and the specific project's terms.
Frequently asked questions
01 Can an owner opt out of KRT? →
The redevelopment decision is made by the authorities and is binding for properties within the project boundaries. That said, owners have lawful ways to influence the terms of the seizure — compensation amount, timing, and the form of compensation.
02 How is compensation calculated? →
The compensation amount is based on a market valuation of the property plus losses related to the seizure. Owners may commission an independent valuation and use it in negotiations or in court.
03 What if the offered compensation is too low? →
The compensation amount can be challenged in court with an independent valuation and evidence of the property's real value. Legal support at this stage meaningfully improves the odds of a fair outcome.
04 How long does the process take? →
Timing depends on the specific project and on whether a pre-trial agreement is reached. Litigation can take anywhere from several months to over a year.