Contract system - the most effective mechanism to stimulate import substitution

14 August 2014, Thursday

Russian Ministry of Economic Development has developed a new mechanism to support local producers - to restrict access. "Advantage of this mechanism is that it gives preferential treatment to domestic producers without compromising the competitive environment in the industry markets. Due to the mechanism, domestic goods remain competitive with imported analogues ", - said the director of the Department of the contract system development Maxim Chemerisov.

The mechanism will operate as follows:

If the competition or auction filed two or more applications, which contains proposals for the supply of domestic goods from different manufacturers, all of foreign origin application will be rejected.

If the competition or auction came only one application with a proposal for the supply of domestically produced goods, and the rest of the offer goods of foreign manufacture, such application shall not be rejected and take part in the competition or auction.

Currently preferences apply to agricultural and fishery products, which helps to stimulate demand and improve the competitiveness of the most vulnerable sectors of the agro-industrial and fishery complex. The list also includes the preferential production of porcelain products, pharmaceuticals and medical products, products of the steel industry.

Also previously signed a decree introducing a ban on the purchase of certain types of machinery, originating from foreign countries for the purposes of procurement for state and municipal needs. Fall under the ban of cars, vans, bulldozers, road rollers, trolley buses, fire trucks, trams (Decree of 14 July 2014 № 656).

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