List of cases for entering into a life cycle contract is expanded

On January 8, 2016, Government Decree No.1480 dated December 29, 2015 “On introducing amendments to paragraph 1 of Decree No.1087 of the Government of the Russian Federation dated November 28, 2013” was published, expanding the previously existing list of possible cases where life cycle contracts can be entered into. A “life cycle contract” means a contract for the procurement of goods or works for state or municipal needs, as well as ongoing servicing, repair and use and/or disposal of provided goods or created facility. 

The new Government Decree adds the following types of works to the list of possible cases for entering into life circle contracts:

• design and construction of road facilities which comprise a technological part of motorways – production facilities and road outfit facilities;
• design, construction and reconstruction of capital facilities in the field of health care;
• design, construction and reconstruction of facilities for housing and servicing the military and members of their families;
• design, construction and use of capital facilities for public social services;
• design, construction and reconstruction of capital facilities in the field of culture;
• design and reconstruction with elements of restoration and/or adaptation for modern use of facilities of cultural heritage of the Russian peoples. 

This Government Decree entered into force on the date it was signed. 

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

Rimma Tolmacheva  Principal 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.