In April 2016, the government of the Russian Federation announced a change in the local input requirements for the participation in certain public purchases.



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Inception date: 19 Apr 2016 | Removal date: open ended

Public procurement localisation

On 19 April 2016 the Russian Government (according to Resolution No. 717-p) has introduced an obligatory state pre-assessment of certain planned procurement schedules and modifications thereof with respect of 135 state-owned companies. Concretely, this state measures has the purpose to monitor for compliance with Law No. 223-FZ 'On the Procurement of Goods, Work and Services by Certain Legal Entities' concerning the participation of small and medium enterprises in the procurement orders of these enterprises.

The state-owned companies in the list are selected based on their annual income for 2015, calculated on the basis of:

  • the procured goods, works and services at the amount of at least 2 billion RUB (ca. 27.44 million USD as per the official RUB/USD exchange rate for 31 December 2015), calculated on the basis of their booked value in the companies' accounting documents, and
  • biggest procurement deals in 2015.

Without such an pre-assessment done by the respective competent executive authorities of the Russian Federation or created by them organisations, these 135 enterprises will not be able to approve and/or amend their procurement plans. It may be expected that the affected SME operate in the same or related sectors to their procurement contractors. Hence, this rule has been used in order to identify the affected sectors.
This state measure was introduced for the first time in 2015 with Resolution No. 2258- of 6 November 2015 (see the provided related GTA report No. 10397). It was based on the same criteria as the formulated in Resolution No. 717-p but with respect to companies' accounting figures for 2014. As a result, 35 companies were identified based on Resolution No. 2258-. However, the new list, introduced by Resolution No. 717-p that contains 135state-owned ompanies has no coincidences with the existing list of 35state-owned companies. Therefore, it is reported as a separate case.