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CMS Client Alert | March 2015 | Infrastructure & Project Finance

Developments in public procurement in Russia – A new incentive for foreign manufacturers to localise production?

10/03/2015

The trends emerging from recent developments in the field of public procurement show that a two-way process is under way in Russia. On the one hand, the policy of restricting access of foreign-made goods to public tendering has of late gained a new momentum, with some initiatives already in force, while others are being contemplated. This policy affects a number of sectors including, in particular, the automotive, heavy equipment, light industry and medical device sectors, and the list may continue to expand. On the other hand, measures are being developed to encourage foreign manufacturers to locate their production within Russia, thereby benefiting the country via the transfer of technologies. A bill introducing state guarantees in favour of suppliers who are committed to locating production in Russia has notably been proposed, which if adopted would constitute a positive signal for investors.

Source
CMS Client Alert | March 2015 | Infrastructure & Project Finance
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Authors

Safaryan Hayk
Hayk Safaryan
Partner
Moscow
Vsevolod Tyupa