The pre-reform period was characterized by state monopoly of land and by land use that did not require any payment. The legal principles of land reform in Russia and the rest of the former Soviet Union were set in 1989 by the Basic Law on Land Legislation in the USSR and the Soviet Republics....

It is widely believed that land markets, including both land sales and tenancy markets, are neither efficient nor conducive to social equity. It is often argued that tenants, particularly share tenants, do not have proper incentives to work and invest, partly because of the disincentive effects...