Russia. Manufacturers from Russia and the Customs Union states entitled for preferences during public procurement

Manufacturers from Russia and the Customs Union member states are entitled for preferences when participating in public procurement programs. The Ministry of Justice of Russia has registered the corresponding Order “On the Terms and Conditions for Access of Goods Originating from Foreign States for the Purpose of Procurement of Goods, Work and Services to Meet State and Municipal Needs”.

The document provides for (i) the procedure for granting preferences of 15% of the contractual price for the suppliers of goods of Russian, Belarusian and Kazakhstani origin, and (ii) the list of goods in respect of which the preferences are available. Effective 2014, the preferences will apply for the first time to the goods originating from Kazakhstan.

In addition, the order expands the list of industries entitled for the preferences. For example, pharmaceutical and medical goods were enlisted (due to their significance for social sphere development and the need to meet the essential and vital requirements of the population).

The preferences are supposed to support domestic manufacturers and preclude the sales of low-quality products which are often supplied at understated prices.

The order will be effective till December 31, 2015.

Source: KPMG-Russia