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.

The detailed version of the Resolution is available on the KonsultantPlus website.