Admit foreign companies to government procurement after "moving" in Russian

10 July 2014, Thursday

Ministry of Industry and Trade of the Republic of Tatarstan is developing a draft decree on the limitation of foreign procurement of industrial products from the autumn of 2013. Initially, the list of such products include only cars and transport equipment, but later decided to expand the list.

 

Consider two concepts. The first is that restrictions the purchase of foreign goods for state needs will be introduced one government decree on a wide range of industries themselves restriction was implemented since 2015. The second sentence implies prohibitions point: for each sector will be a separate decision of the government and its stages, is a list of permitted and prohibited items.

 

Another proposal in the spring of this year, appeared in Ministry of Economic Development. Ministry wants to ban participate in public procurement companies registered in offshore zones. They can’t get access to state order in sub-contractors status or sub-executor status if the price of the contract with them is more than 10% of the contract price.

 

The government would do well if they allow access to public procurement companies that produce products from "forbidden" list, provided committing themselves to localize production, says general director of the National Association of Institutes of procurement Sergei Gabestro: "We need to motivate and compel foreign manufacturers to locate production to develop the economy. "

 

So far the only successful experience in Russia to attract foreign investors through incentives - in the automotive industry. Since 2005 government contracts with foreign concerns that unfold one after the other production in Russia. The country already operate factories almost all major international brands - Renault, Nissan, VW, GM, Toyota, Ford, Peugeot-Citroen, Hyundai, etc. In the past year, according to "Autoreview ", the country has sold nearly 1.4 million foreign cars assembled in Russia, they took more than half of the market, while at the same time in 2007 prevailed on the market imported cars, local occupy no more than 15%.

SUBSCRIBE FOR NEWS
All content on this site is licensed under
Creative Commons Attribution 4.0 International