The Ministry of Industry and Trade of the Russian Federation prepared a draft Resolution of the Government of the Russian Federation, establishing restrictions on pharmaceuticals from foreign countries (except Belarus and Kazakhstan) for state and municipal procurements, and submitted it to the Russian Government.

Pursuant to the draft Resolution, the following restrictions for foreign pharmaceuticals are established for state procurement:

• When purchasing a pharmaceutical, the customer shall reject bids that propose the supply of foreign pharmaceuticals;
• When purchasing different pharmaceuticals which are subject matter of one contract, the customer shall reject bids containing mainly (50% or more in terms of cost) proposals for supply of foreign pharmaceuticals.

This presumes that there are two or more bids for supply of pharmaceuticals whose country of origin is wholly or mainly (50% or more in terms of cost when purchasing various pharmaceuticals under one contract) Russia, Belarus and Kazakhstan.

The draft Resolution does not apply to:

• Purchasing pharmaceuticals for patients having medical reasons (individual drug intolerance, vital reasons) by decision of a medical commission;
• Purchase of pharmaceuticals by diplomatic representative offices, consular institutions of the Russian Federation and representative offices of the Russian Federation at international organizations for supporting their activity in a foreign country.

It should be noted that the Plan for priority measures on ensuring sustainable development of the Russian economy in 2015 provided for the adoption of this Resolution on February 15, 2015, so the adoption of the Resolution can be expected in the nearest time.

It should also be noted that prior to the Resolution being adopted, Armenia could be included in the list of countries from which import of pharmaceuticals is not restricted, due to it joining the Eurasian Economic Union.

Draft Resolution of the Government of the Russian Federation “On establishing restrictions on import of pharmaceuticals from foreign countries for state and municipal procurement”

Additional notes

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