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The Russian Government Introduces Bans and Restrictions on Public Procurement of Foreign Goods

23 декабря 2024
126

On December 23, 2024, the Russian Government issued Decree No. 1875, titled "On Measures to Ensure a National Regime in the Procurement of Goods, Works, and Services for State and Municipal Needs, as well as for Certain Categories of Legal Entities." This decree introduces new bans and restrictions on the public procurement of foreign goods.

The measures apply to public procurement carried out by specific categories of legal entities in accordance with Federal Law No. 44 "On the Contract System in the Procurement of Goods, Works, and Services for State and Municipal Needs" and Federal Law No. 223 "On the Procurement of Goods, Works, and Services by Certain Types of Legal Entities."

The Russian Government has developed unified lists of foreign products subject to procurement bans and restrictions, including software, databases, and certain types of services. The decree establishes benefits for purchasing domestically produced goods and sets a minimum mandatory share for the procurement of Russian products under the aforementioned federal laws.

The bans do not apply in cases where, for instance, specific industrial goods are not manufactured in Russia or when no equivalent software is listed in the Russian or Eurasian registry.

The decree also outlines the procedure for verifying the country of origin for goods. Special rules apply to the procurement of pharmaceuticals and radio-electronic products. While the decree takes effect on January 1, 2025, some provisions will be implemented starting September 1, 2025.

The law firm Nadmitov, Ivanov & Partners provides consultations on matters related to the international supply of goods and services.

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