ANNOUNCEMENT 01 Jul 2015In July 2015, the government of the Russian Federation announced a change in the local input requirements for the participation in certain public purchases.
NUMBER OF INTERVENTIONS
Decree No. 1352 of 11 December 2014 has introduced for the first time a 10% mandatory procurement purchase of goods, works and services by certain legal entities from SMEs.
The legal entities that are obliged to apply this rule are specified in article 2 of Decree No. 1352. In particular, starting from 1 July 2015, legal entities ("contractors") whose annual profit is at the amount of 10 billion Russian RUB (ca. 175.51 million USD as of 1 July 2015) are eligible. Furthermore, starting from 1 January 2016, all other legal entities become eligible.
Further important details regarding the public procurement procedure under this state intervention are:
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.