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LAW OF THE AZERBAIJAN REPUBLIC

of February 18, 1995 No. 976

About bases of agrarian reform

(as amended of the Law of the Azerbaijan Republic of 04.03.2005 No. 846-IIGD)

This Law determines the main directions of reform of agro-industrial complex (the agrarian sector) of the Azerbaijan Republic and their legal support.

Provisions of the Law form the basis for other regulations on agrarian reform.

Chapter I. General provisions

Article 1. Purpose and tasks of agrarian reform

The purpose of reform is conclusion of the agrarian sector from crisis, stabilization of economy, improvement of economic and social situation of the population.

Reform tasks - forming of the new relations of land ownership and property, change and enhancement of relations of production by creation and development of different types of farms in the production sphere and infrastructure in relation to market economy.

Article 2. Main directions of agrarian reform

The main directions of agrarian reform are:

forming of the new relations of property in the agrarian sector;

land reform, reform of meliorative and water economy;

creation of different types of farms;

state providing the agrarian sector.

Article 3. Basic principles of agrarian reform

The basic principles of agrarian reform are:

coordination of agrarian reform with economic policy of the state;

ensuring social justice and voluntariness in carrying out reform;

ensuring complete freedom of producers in the organization of economic activity and the order the products;

accounting of features of agricultural industry of the republic;

observance of requirements of environmental protection;

social development and social protection of the population sat down.

Chapter II. Forming of new patterns of ownership in the agrarian sector

Article 4. State-owned and municipal property

In state-owned property research establishments and educational institutions, their pilot bases are, as a rule, left; objects of veterinary science and protection of plants; sortosemenovodchesky and cattle breedings, fish companies; nature protection objects, reserves, important livestock and poultry-farming complexes, processing enterprises, meliorative and water management objects, companies for production and repair of agricultural machines, mashinoispytatelny stations and other objects of the state value.

The objects of the agrarian sector of local value which are in state-owned property can be transferred to the municipal possession. According to the decision of owners other property also can be transferred to the municipal possession.

The list of the objects left in state-owned property and transferred to the municipal possession affirms the Supreme Council of the Azerbaijan Republic on representation of the President of the Azerbaijan Republic.

Article 5. Land reform

Reform provides separation of lands into the state-owned and municipal property, voluntary conveyance of lands in private property on the established regulations, creation of equal conditions for economic activity to land users irrespective of pattern of ownership. The owner of land according to the land legislation of the Azerbaijan Republic has the right to sell the land, to grant, exchange, pledge, lease and to descend, buy the additional parcel of land.

In case of land reform natural and geographical conditions of the territory, density of population and its participation in farm-production, quality of lands, local features of land use are considered, requirements of use of lands to destination and environmental protections are observed.

Article 6. Reform of meliorative and water economy

Reform is undertaken for the purpose of change of the relations of property on meliorative and water management objects and increases in efficiency of water use by introduction of paid water use.

Large sources of water, meliorative and irrigating systems, the companies for their operation and other objects are left in state-owned property.

The meliorative and irrigational systems which are in property of the state, located in the territory of servicing of Consolidation of water users according to the decision of relevant organ of the executive authority are transferred to long-term use of Consolidation (for the term of at least 20 years). Conditions of transfer of systems to use and procedure for their response in case of violation of these conditions, it is established by the specified decision.

Intraeconomic meliorative and water management objects can be transferred by the decision of sovkhozes and kolkhozes (owners) to the municipal possession or are left at the disposal of the owners formed as a result of reform.

Article 7. Privatization and privatization of processing industry and objects of production infrastructure

The processing enterprises included in municipal property are on sale or incorporated. In case of sale of the company the property is provided to members of collective and producers of raw materials. When incorporating the company the controlling stock is on sale on favorable terms to producers of raw materials, their certain part is donated to members of collective. Other shares are sold in general procedure. To ten percent of cost of processing enterprises can remain in municipal property.

The processing enterprises which are in state-owned property are privatized according to the legislation of the Azerbaijan Republic on privatization.

Privatization of property in production infrastructure is performed by the principles established for processing enterprises.

Article 8. The new relations of property in social infrastructure

Property issues in social infrastructure are resolved by persons having the right to share from property. Change of basic purpose of the specified objects is not allowed.

At the same time:

health care facilities, physical cultures and sport, kindergartens and day nursery, comprehensive schools and other objects remain in the private property based on joint tenancy or are transferred to the municipal possession;

municipal services, systems of heating and water supply, subjects to consumer services, trade, public catering are on sale or remain in the private property based on joint maintaining or are not transferred to the municipal possession;

premises (houses) according to the procedure, stipulated by the legislation the Azerbaijan Republic about privatization of premises, are transferred to the possession of tenants.

The relations connected with the objects which are in lease are regulated by the legislation on lease.

Article 9. Reform of consumer cooperation

Reform of consumer cooperation is directed to the solution of the following questions:

refining of owners and their property in consumer cooperation in general and in each its structural division;

determination of unitholders and their share in property;

providing the right of exit of the unitholder from membership with the share;

expansion of activities of consumer cooperation on an equal basis with traditional industries of logistics, agroservice and other industries;

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