IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2013 | Removal date: open ended
Still in force

Public procurement access

On 29 December 2012, the Russian President, Mr. Vladimir Putin, signed the Federal Law FZ 275 ''On the state defence order''. The law was approved by the State Duma, the lower house of the Federal Assembly of Russia on 19 December 2012, and by the Federation Council, the upper house of the Federal Assembly of Russia, on 26 December 2012.
 
With this law the Russian government limits the access of foreign producers of arms and military equipment in Russian state defense orders. Foreign manufacturers are not allowed to be the prime contractor in such orders. 
 
According to RIA Novosti, citing the First Deputy Chairman of the Military-Industrial Commission of the Russian Federation, Mr. Ivan Kharchenko, the law also introduces a minimum return for Russiancompanies. If a contract involving state defence orders becomesunprofitable, it will be reimbursed up to the minimum margin.
 
 
Furthermore, the main contractor will be compensated in case of incurred damages due to unused production capacity.
 
 
Law FZ 275 enters into force on 1 January 2013.
 
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

447 Weapons & ammunition & parts
9304 Other arms (for example, spring, air or gas guns and pistols, truncheons), excluding those of heading 93.07.
930400 Other arms (for example, spring, air or gas guns and pistols, truncheons), excluding those of heading 93.07.
9305 Parts and accessories of articles of headings 93.01 to 93.04.
930520 Of shotguns or rifles of heading 93.03

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