G/TRIMS/Q/RUS/8  
 
24 January 2018  
(18-0576) Page: 1/3 
Committee on Trade -Related  Investment Measures  Original: English  
 
RUSSIAN FEDERATION – MEASURES IMPLEMENTIN G 
RUSSIA'S IMPORT SUBS TITUTION POLICY  
 
QUESTIONS FROM THE U NITED STATES FOR THE  RUSSIAN FEDERATION R EGARDING  
THE RULES FOR A PROD UCT TO QUALIFY AS "M ADE IN RUSSIA" FOR T HE PURPOSES  
OF PURCHASES BY AN E NTITY COVERED BY LAW NO. 2 23-FZ, 
LAW NO. 249 -FZ AND/OR LAW NO. 48 8-FZ 
 
The following communication, dated 22 January 2018, is being circulated at the request of the 
Delegation of the United States.  
 
_______________  
 
 
Federal Law No. 223 -FZ "On the Purchasing of Goods, Works, and Services by Certain Types of 
Legal Entities" (18 July 2011) authorizes the Government of Russia to establish priority for 
"Russian" goods, works, and services in purchases by a defined group of "covered entities." Those 
covered entities i nclude companies that are owned by federal -, regional -, or municipal - levels of 
the government; business entities in which government ownership exceeds 50 percent; unitary 
enterprises; and certain federally funded government institutions.  
 
Federal Law No. 249-FZ, "On Amending the Federal Law 'On the Purchasing of Goods, Works and 
Services by Certain Types of Legal Entities' and Article 112 of the Federal Law 'On the Contract 
System for the Procurement of Goods, Works, and Services for State and Municipal Ne eds" 
(13 July 2015) expanded the definition of "covered entities" to include (1) business entities in 
which the government's share of authorized capital is less than 50 percent and "other legal entities 
not otherwise specified" where such entities are carr ying out investment projects worth 10 billion 
rubles (~$150 million) or more; and (2) entities carrying out investment projects which receive 
state guarantees and/or which receive financial support for more than 10 percent of the project's 
costs from the f ederal budget, the National Wealth Fund, and/or Vnesheconombank. 
(Law No. 249-FZ also established the Import Substitution Commission.)  
 
Finally, Federal Law No. 488 -FZ, "On Industrial Policy in the Russian Federation" 
(31 December  2014) establishes a prior ity for industrial products produced in Russia in purchasing 
by SOEs and gives the Government the right to establish requirements for the inclusion in 
purchasing contracts of additional terms to ensure the development of production of industrial 
products i n Russia.  
 
Taken together, these laws grant the Government of Russia the authority to restrict the purchasing 
decisions of a large part of the Russian economy, separate and distinct from government 
procurement. Based on the authority in those laws, the Gov ernment of Russia has issued a variety 
of measures requiring certain entities to give priority to Russia goods, works and services. Those 
measures include, but are not limited to:  
 
 Resolution No. 708, dated 16 July 2015 "On Special Investment Contracts in Certain 
Spheres of Industry."  G/TRIMS/Q/RUS/8  
 
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   Resolution No. 719, dated 17 July 2015, "On the Criteria for Classification of Industrial 
Products as Industrial Products without Analogues Manufactured in the Russian 
Federation."  
 Resolution No. 785, dated 4 August 2015, "On the Government Commission on Import 
Substitution."  
 Resolution No. 1169, dated 29 October 2015, "On the Procedure for Monitoring the 
Compliance of Plans for the Procurement of Goods, Works, and Services; Plans for the 
Procurement of Innovative Products, Hig h-Tech Products; Pharmaceuticals; Amendments 
to Such Plans; Conformity Assessment of the Drafts of Such Plans; Draft Amendments to 
Such Plans; with the Requirements of Legislation of the Russian Federation Providing for 
the Participation of Small and Mediu m Enterprises in Procurement; and the Procedure 
and Deadlines for the Suspension of the Implementation of the Indicated Plans Based on 
Such Assessment and Monitoring."  
 Order No. 2258 -r dated 6 November 2015, "On Approving the List of Specific Purchasers 
Whose Draft Plans for Purchases of Goods, Works, and Services; Draft Plans for 
Purchases of Innovative Products, High -Tech Products, and Medicines; and Draft 
Amendments to Such Plans are Subject to Evaluation by the 'Federal Corporation for the 
Development o f Small and Medium Business' before their Confirmation for Compliance 
with the Requirements of Russian Legislation Providing for the Participation of Small and 
Medium Enterprises in Purchasing."  
 Order of the Ministry of Industry and Trade No. 3568, dated 1 2 November 2015, "On 
Approval of the Procedure for Confirmation of the Production of an Industrial Product in 
the Territory of the Russian Federation and the Procedure for Determination of the 
Differences in the Parameters of an Industrial Product Regardin g its Functional Purpose 
or a List of Functions Performed, its Range of Uses, Quality Characteristics (Duration of 
Warranty Period, Effective Life or Service Life, Reliability, Energy Consumption, 
Ecological Compatibility, Physical, Chemical, Mechanical, o r Organoleptic Properties Not 
Solely Related to the Exterior Appearance of the Industrial Product and Essentially 
Influencing the Functional Purpose, Range of Uses, or Quality Characteristics of an 
Industrial Product), from the Parameters of an Industrial Product Produced in the 
Russian Federation."  
 Order No. 2744 -r dated 29 December 2015 "On Approval of the List of Certain Types of 
Industrial Products, Which is Included in the 'List of Long -Term Industrial Product 
Requirements Needed to Implement Investmen t Projects,' and the Purchase of Which 
Cannot be Carried out by the Purchasers or Legal Persons Referenced in Part 5 of 
Article  1 of the Federal Law 'On the Purchase of Goods, Works, and Services by Certain 
Kinds of Legal Entities,' without Approval of the  Performance Features of Such Products 
from the Government Import Substitution Commission.  
 Order No. 2781 -r dated 31 December 2015 "On Approval of Certain Types of Industrial 
Products."  
 Resolution No. 1521 dated 31 December 2015 "On the approval of the cri teria for 
classifying the product as a product of machine building, the price of a unit of 
engineering products, in excess of which information on such products is included in lists 
of prospective needs for products of engineering that are formed by custom ers or legal 
entities necessary for the implementation of investment projects."  
 Government Decree No. 925 of 16 September, 2016 "On priority of commodities of 
Russian origin and work done and services provided by Russian persons over 
commodities originatin g from a foreign state and work done and services provided by 
foreign persons".  
The United States has already asked Russia for information on a number of these measures, but 
has not yet received any answers.  
 G/TRIMS/Q/RUS/8  
 
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  Questions : 
 
1. Please identify all of the legal measures that establish the rules for a product to qualify as 
"Made in Russia" for the purposes of purchases by an entity covered by Law No. 223 and/or 
Law No. 249.  
 
2. Please provide a comprehensive list of products that require a "Made in Russia" d esignation 
for purchases by an entity covered by Law No. 223 and/or Law No. 249.  
 
a. For those products that require a "Made in Russia" designation for purchases by an 
entity covered by Law No. 223 and/or Law No. 249, how is local content defined and 
calculat ed?  
b. For those products that require a "Made in Russia" designation for purchases by an 
entity covered by Law No. 223 and/or Law No. 249, which government entity is 
responsible for determining whether a particular product shall be designated "Made in 
Russia"?  
3. What is the process for developing the criteria for a product to earn the "Made in Russia" 
designation for purchases by an entity covered by Law No. 223 and/or Law No. 249?  
 
4. We understand that on December 31, 2017, President Putin signed "Law No . 496 -FZ "On 
Amendments to the Federal Law "On Procurement of Goods, Works, Services by Individual Types 
of Legal Entities" (31 December 2017). This law authorizes the government to establish and 
impose local content requirements on aircraft and ships when  purchased by an entity covered by 
Law No. 223 and/or Law No. 249.  
 
a. Please describe the types of local content requirements that the government is 
authorized under the law to apply to an aircraft or ship in order for it to qualify as "Made 
in Russia" for p urchase by an entity covered by Law No. 223 and/or Law No. 249.  
b. Does the law prohibit the purchase by a private enterprise of aircraft or ships that do not 
meet the "Made in Russia" criteria?  
 
__________