G/TR IMS/Q/RUS/5  
 
27 September  2016 
(16-5149) Page: 1/2 
Committee on Trade -Related Investment Measures  Original: English  
 
 RUSSIAN FEDERATION – PURCHASES BY STATE O WNED ENTERPRISES AND  FOR 
INVESTMENT PROJECTS RECEIVING STATE SUPP ORT – IMPORT SUBSTITUTION  
QUESTIONS FROM THE EUROPEAN UNION  
The following communication, dated 26 September  2016, is being circulated at the request o f the 
Delegation of the European Union . 
 
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Question 1  
 
In EU 's understanding the Federal Law 223 -FZ "On purchases of goods and services by certain 
types of legal entities ", as amended by Law 249 -FZ of 13 July 2015, covers, on the one hand, 
purchases by entities covered by Article 1(2) of the Law, i.e. essentially companies in which the 
State or State entities hold an interest of over 50%, (hereafter "State Owned Enterprises " or 
"SOEs") and, on the other hand, purchases by any legal person usi ng State funding for 
implementation of investment projects that are included in a specific registry  (Articles 1(5) and 
3.1 of the Law). Is this understanding correct?  
 
Question  2 
 
With regard to purchases by SOEs, it is the EU 's understanding that, accordi ng to Article 3 (8) of 
the Law, the government of the Russian Federation may require priority for goods of Russian origin 
and for works and services performed or rendered by Russian persons. Could the 
Russian  Federation confirm this understanding and indic ate the conditions and the procedures and 
the criteria used for requiring such priority. Please also indicate any implementing acts.   
 
Question  3 
 
With regard to purchases by SOEs, according to Article 3 (8) of the Law, the government of the 
Russian Feder ation may require the participation by small and medium -sized enterprises (hereafter 
"SMEs ") in procurement tenders. Could the Russian Federation indicate the exact definition of 
SMEs as concerned by this provision, whether SMEs shall be registered in Russ ia to be eligible, if 
foreign ownership is limited to 49% to be eligible and if there is indeed an allocation of 18% of 
share for SMEs in the purchases by SOEs with a turnover above 10 billion USD?  
 
Question  4 
 
With regard to purchases for investment proje cts, according to Article 3.1(4) of the Law, the 
government of the Russian Federation determines the procedure for selecting investment projects 
for inclusion in a registry. In our understanding this procedure was determined in the resolution of 
the govern ment of the Russian Federation No 1516 of 30 December 2015. Could the 
Russian  Federation indicate the conditions for being included in a registry and if the list of 
investment projects is public?   
 
Question  5 
 
With regard to purchases for investment proje cts, according to Article 3.1(7) of the Law, the 
government of the Russian Federation may determine particular types of products that may not be G/TRIMS/Q/RUS/5  
 
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  purchased by the entities concerned outside the Russian Federation without approval of such 
purchases by the co ordination authority.  
 
a. Could the Russian Federation confirm that the goods listed by the governmental 
orders n°2781 -r of 29 December 2015 and n°2744 -r of 29 December 2015 cannot be 
purchased abroad and on what basis the criteria for this list was estab lished?  
b. Could the Russian Federation indicate the procedure and criteria (and their legal basis) 
based on which the coordination authority grants or refuses to grant its approval for 
such purchases?  
c. Please indicate whether the approval procedure also  applies to products other than 
those listed in the orders n°2781 and n°2744.   
 
Question  6 
 
In EU 's understanding, pursuant to Article 3.1(9) -(11) of the Law, entities implementing 
investment projects are required to establish lists of products from the ma chine building industry 
required for implementation of investment projects and submit such lists "for the consideration of " 
the coordination authority. Those lists should in particular include information on whether the 
products originate in a foreign coun try and on operational characteristics and estimated prices of 
such products. Please explain the rationale and operation of this requirement.  
 
 
 
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