ANNOUNCED AS TEMPORARYNo
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.
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