ANNOUNCED AS TEMPORARYNo
Public procurement localisation
Decree No. 819 of 19 August 2016 of the Government of the Russian Federation increased the mandatory volume of procured goods, works, and services, ordered by certain types of legal entities from small and medium enterprises ("SMEs") as suppliers from 10% to 15%.
Decree No. 819 constitutes an amendment to Decree No. 1352 of 11 December 2014. The latter introduces for the first time the 10% mandatory procurement purchase from SMEs. The legal entities that are obliged to apply this rule are specified in article 2 of Decree No. 1352:
The new Decree No. 819 enters into force on 1 January 2018.
To the extent that this measure shifts Russian government spending away from contracts that could be contested by foreign firms (which are typically not SMEs), then this measure can disadvantage foreign commercial interests
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