The article reviews the laws relating to land privatisation and land transactions in Russia and describes the ownership structure of agricultural land after more than a decade of reforms. The main transactions in land are analysed on the basis of data collected in a 2003 survey of corporate farms and individual land users. Low demand for agricultural land, limited access to market information, and bureaucratic complexity are identified as the main obstacle to the development of a land market. Complicated bureaucratic procedures lead to high transaction costs that prevent individual landowners from registering their property rights. Some policy recommendations are proposed for facilitating the development of land markets. Comparative Economic Studies (2005) 47, 127–140. doi:10.1057/palgrave.ces.8100080