The project of the new rules to ensure government contracts adopted in the first reading

Highlight the most significant amendments:

- the contract can be reduced if two conditions are met. First, the customer's counterparty has no unpaid penalties on the contract or a non-returned advance or both. Secondly, the customer entered information on the value of the obligations fulfilled in the register of contracts;

- if the bank that issued the guarantee has revoked the license, the contractor must provide a new security. This condition will need to be consolidated in contracts that require enforcement;

- in contracts with execution stages, the customer will need to provide for a reduction in the amount of collateral. Exceptions will be determined by the government.

It is planned that the changes will start from the new year. They will be applied to public procurements, which will be notified to the EIS after January 1.

Document: Draft Federal Law No. 197556-7 (http://sozd.parlament.gov.ru/bill/197556-7)

Adopted on first reading on September 20, 2017