Starting from January 1, 2016 Decree No.1309 dated December 03, 2015 of the Government of the Russian Federation “On approval of Rules for holding negotiations by an authorized body to consider a proposal for implementation of a public-private partnership project or a municipal-private partnership project to assess project efficiency and determine its comparative advantage” enters into effect.

This Decree adopts rules for holding negotiations between an authorized body, public partner and initiator of the project during consideration of a proposal for project implementation in order to assess its efficiency.

In particular, these rules:

-         stipulate that negotiations are to be held on the initiative of the authorized body, with mandatory participation of the public partner and the initiator of the project;

-         foresee an opportunity to involve third parties in the negotiations (experts, advisors and state bodies);

-         provide for a procedure for holding negotiations and formalizing their results.

Based on the results of negotiations, the authorized body makes a decision on the efficiency or inefficiency of the project. Moreover, following the negotiations, the content of the proposal for project implementation can be amended upon mutual consent of the authorized body, public partner and initiator of the project.

In the event of a positive resolution, the public partner within 5 days forwards the said resolution to the state body authorized to adopt a decision to implement the project.

Pavel Karpunin   Partner   St. Petersburg    pkarpunin@cls.ru   Tel.: +7 (812) 346 79 90

Rimma Tolmacheva   Senior Associate    St. Petersburg    rtolmacheva@cls.ru   Tel.: +7 (812) 346 79 90

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Pavel Karpunin or Rimma Tolmacheva, St. Petersburg 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.