Russian goods suppliers to have priority in procurement under 223-FZ
On September 16, 2016, the Russian Government adopted Resolution No.925 (hereinafter the “Resolution”) thereby having implemented the right to establish priority for Russian goods, works and services over foreign ones, provided for by Federal Law No.223-FZ “On procurement of goods, works and services by certain types of legal entities” dated July 18, 2011.
Pursuant to the said Resolution, starting January 1, 2017, Russian goods, works and services will have priority in procurement (hereinafter the “Priority”), in particular, the Priority will be given in the following events:
- In the course of procurement, when assessing and comparing bids, the price proposed by a Russian participant will be deemed 15% less than the price proposed by a foreign participant (at the same time, the agreement is concluded with the winner at the actually proposed price);
- If the winner of a auction or similar procedure is an entity proposing foreign goods, works or services, the agreement with such winner is concluded at a price 15% lower than the proposed one.
At the same time, the procedure provided for by the Resolution does not apply to procurements declared prior to January 1, 2017.
Should any questions arise in connection with the above or if you need any additional materials, please contact Ekaterina Rudova or Anastasia Dukhina, Moscow Office of Capital Legal Services.
This Information letter keeps the clients of Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this information letter shall not be deemed as legal opinions and do not cancel the need to obtain legal advice or legal opinion on separate issues.