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

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising
Inception date: 01 Jan 2018 | Removal date: open ended

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: 

  • starting from 1 July 2015, legal entities whose annual profit is at the amount of 10 billion Russian RUB (ca. 175.51 million USD as of 1 July 2015)
  • starting from 1 January 2016, all other legal entities. 

 
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

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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