This new legislation sets limitations on entrepreneurial activities within dacha plots, prohibiting amenities like hostels and farms. While it aims to prevent commercial use, exceptions exist. The critical question remains: how will this affect those who rely on selling their garden produce?
The primary purpose of SNTs (horticultural non-profit partnerships) is recreation and cultivation of produce for personal consumption. Dacha owners are permitted to keep poultry and rabbits for their own and their family`s needs. However, constructing full-fledged poultry farms or commercial farms on standard six-hundred-square-meter plots, or engaging in wholesale or regular retail sales of produce, is prohibited. The same applies to fruits and vegetables. If a dacha owner has a surplus of harvest, it can be sold. But how does one distinguish between selling surplus and running a business? Lawyer Nikita Kulachkin comments:
Lawyer
“The key word here is `surplus.` The volume and regularity of sales will serve as important evidence, but only if they indicate a mass and systematic nature of activity – then it will be classified as entrepreneurship. Enforcement of the law can be triggered by complaints from neighbors or the SNT chairman, and in some cases, by inspections from administrative bodies. If violations are identified, the chairman or a neighbor may contact the police. Currently, the law establishes the prohibition itself, while the specific amounts of fines will be set in the Code of Administrative Offenses and regional regulatory acts.”
From September 1st, dacha owners will no longer be able to open car repair shops on their plots. The use of residential buildings on plots for hotels and hostels is also prohibited. But what about those who rent out their property? Lawyer Mikhail Salkin explains:
Lawyer
“If you rent something out on a one-off basis, it won`t be considered entrepreneurial activity. Plus, you can always argue that you`re only renting it out during the summer or when you`re not there, which also isn`t commercial activity. I don`t think this will fall under a direct prohibition. However, if you officially set up a `hotel` and hand out keys from a reception desk, then that would be a violation. The mere act of selling goods from your plot is also not directly prohibited by law. If I have, say, a spare motorcycle or bicycle, and I sell it from my plot, that`s not commercial or entrepreneurial activity. It`s a different matter if you set up a cash register, displayed price tags, and it looks more like a grocery stall – then, yes, the police might even draw up a report.”
Many pensioners live permanently in SNTs, and for them, small-scale services and seasonal trade constitute a significant portion of their income. Natalia, a dacha owner from a large SNT in the Taldom district, told Business FM that many residents there supplement their earnings. She doubts that the new law will significantly impact them.
“In June, there were ads for early cucumbers at one hundred fifty rubles per kilogram, and they were gladly bought. There are also people offering various services. For example, one person lives here year-round and repairs small household and garden equipment, as well as various tools. He works as a security guard, and this supplementary work, it seems to me, constitutes his main income. Flowers, seedlings, and cuttings are also sold. For many retired gardeners, this is significant financial assistance and a nice addition to their pension.”
The question arises as to what extent SNT chairpersons will fully monitor dacha owners to ensure they do not engage in commercial activities. Daria Antonova, President of the Association of SNT Chairpersons, comments:
President of the Association of SNT Chairpersons
“A chairperson does not have the right to enter a specific plot, inspect documents, assess the situation, or determine who resides there or for what purpose the plot is used. They do not possess such authority. Perhaps the law will regulate these legal relationships in the future.”
However, all interviewed experts note that dacha owners in SNTs often have numerous complaints about each other. And even the innocent sale of surplus apples or plums, which the owner often simply has nowhere else to put, could lead to a complaint from a vigilant neighbor. How law enforcement and courts will rule is currently unknown. There is no established legal practice yet, but a “vigilant neighbor” is always nearby.
Rupert Blackwood 
Clement Ashworth