ANNOUNCEMENT 08 Oct 2014

In October 2014, 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

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 17 Jul 2015 | Removal date: open ended
Still in force

Public procurement localisation

On July 17th, 2015, the Russian Government approved Order No. 1393-p in accordance with the "anti-crisis' plan of the Government and under the state program "Development of the industry and increase of its competitiveness".
With Order No. 1393-p were distributed state subsidies in the amount of 3 billion Russian Rubles (approximately 52.63 million USD) between 23 federal entities (top level political divisions according to the Constitution of the Russian Federation).
 
The state subsidies were distributed for the purchase of buses and equipment for housing and utilities under the sub-programme "Automotive industry" of the state programme "Development of the industry and increase of its competitiveness", approved with Decree Nr. 1027 of October 8th, 2014.
 
In article 2 of the sub-programme "Automotive Industry" are specified the following conditions concerning the buses and equipment

  • the equipment must be fuelled on compressed natural gas (methane);
  • the equipment must be produced on the territory of the Member States the Single Economic Space (of the Eurasian Economic Union) not earlier than 2014;
  • all purchased buses must be of category M3 with a length over 12 meter and equipped for the transportation of persons with disabilities.

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.

AFFECTED SECTORS