ANNOUNCED AS TEMPORARYNo
Public procurement preference margin
On 16 September 2016, the Russian government introduced a wide-ranging preference margin into its public procurement regulations. Through decree 925, the Russian government introduces as of 1 January 2017 a preference margin of 15 percent for Russian goods, services and works over their foreign equivalents. This state intervention is intended to stimulate the development of 'all sectors of the Russian economy' (emphasis added).
This state initiative is to be implemented as part of paragraph 1 of part 8 of article 3 of the Federal law No. 223-FZ "On the procurement of goods, works, services by certain types of legal entities".
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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