Goods with a higher level of localization of production in Russia can receive support in public procurement

1 September 2023, Friday

Artem Grinenko, Deputy Director of the Department of Budget Policy in the Field of Contract System of the Ministry of Finance of the Russian Federation, spoke about the proposals of the Ministry of Finance of the Russian Federation to optimize the mechanisms for providing national treatment to simplify the procurement of domestic products at a profile round table within the framework of the International Military-Technical Forum "Army-2023".

The relevant draft law is currently under consideration by the Government of the Russian Federation. The document proposes to establish in Federal Laws No. 44 and No. 223 similar provisions on the right of the Government to impose bans on purchases of certain foreign products or restrictions on purchases of foreign products under the "second superfluous" mechanism, as well as to provide a cost preference to domestic goods.

"Similar provisions will simplify and unify the work of customers and suppliers who apply both procurement laws in their activities," said the Deputy Director of the Department.

Another important provision, which was described by Artem Grinenko, gives the Government of the Russian Federation the opportunity to provide additional support for certain products of Russian origin with a higher technological level of localization.

"In public procurement and procurement of state-owned companies, it is proposed to give priority to goods with a high level of localization of production over goods with a low level of localization. The measure is aimed at stimulating localization in Russia and creating full–cycle production facilities," added Artem Grinenko.

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