ANNOUNCEMENT 19 Aug 2016
In Agust 2016, the government of the Russian Federation announced a change in the local input requirements for the participation in certain public purchases.
NUMBER OF INTERVENTIONS
19 2016 819. 2016 . 1 2018 , , 10 15%.
19 2016 819
11 2014 1352
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