G/TRIMS/Q/RUS/3  
 
10 December 2015  
(15-6531)  Page: 1/2  
Committee on Trade-Related Investment Measures  Original: English  
 
RUSSIAN FEDERATION – LOCAL CONTENT REQUIREMENTS FOR PURCHASES  
BY STATE-OWNED ENTERPRISES 
REPLIES TO QUESTIONS1 FROM THE UNITED STATES 
The following communication, dated 10 December 2015,  is being circulated at the request of the 
Delegation of the Russian Federation. 
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Question 
 
The United States is concerned about a growing emphasis in Russia on local content requirements and import substitution policie s. For example, on 28 January 2015, Russia 
published its "Plan of Priority Measures to  Ensure Sustainable Economic Development 
and Social Stability in 2015" – the so-called "Ant i-Crisis Plan". An important element of 
the plan is the call for government action to  support import substitution. In fact, the 
Government of Russia has already taken step s to implement this import substitution 
strategy for medical devices. On 5 Febr uary 2015, the Russian Government adopted 
Resolution No. 102, "Establishing Market Entr y Restrictions for Individual Types of 
Medical Devices Originating fr om Foreign Countries in the Context of Procurement for 
State and Municipal Needs." According to th e Resolution, certain foreign-made medical 
devices are not eligible for state and municipal government procurement tenders if the 
device is made by two or more producers in the Eurasian Economic Union (Russia, 
Kazakhstan, Belarus, and Armenia).  
 Unfortunately, Russia appears to be preparin g to expand these kinds of requirements 
beyond government procurement. It is ou r understanding that Russia is considering 
applying requirements to purchase Russian-made inputs to state-owned enterprises as well. Proposed amendments to the Federal Law No. 223 (dated 18 July 2011) will allow the Russian Government to "establish specif ics of procurement plans and tender rules 
for procurement by specific entities or procurement of specific goods, works and 
services by state-owned companies, includ ing during implementation of investment 
projects." The Explanatory Note describi ng the proposed amendments acknowledges 
that the current law could be viewed as inconsistent with Russia's WTO obligations.
2 
Notwithstanding this concern, and a stated de sire to create new rules in line with WTO 
obligations, the new language still appears to authorize the government to frame 
procurement plans or tender rules to effectively require SOEs to purchase Russian 
goods.   
1. The explanatory note to the proposed amendments states that they will bring 
Russia's policies for purchases by SOE in  line with WTO obligations. How will 
the proposed amendments accomplish this goal? 
 
2. How will the Russian Government ensure that purchases carried out under 
the proposed amendments are used for government procurement, rather than for commercial purposes? 
                                               
1G/TRIMS/W/149. 
2 The current law allows the govern ment to "set a priority on good s of Russian origin and works and 
services carried out or rendered by Russian persons in relation to goods originating from a foreign country, or 
work and services performed or rendered by foreign persons." G/TRIMS/Q/RUS/3 
 
- 2 - 
 
  Reply: 
 
The proposed amendments to the Federal Law of 18 July 2011 No. 223 mentioned by the United States were not adopted. 
 
Nevertheless, certain amendments to the Federal Law No. 223 were introduced by the Federal Law of 13 July 2015 No. 249-FZ. These amendments co me into force on 10 January 2016. The Federal 
Law No. 249-FZ relates to the investment projects  with state financing and costs exceeding 10 
billion rubles. Principally, these are projects in the public and defense sectors and some of them 
are aimed at creation of infrastructural facilities  for the governmental purposes. The purchases of 
certain types of machinery for the implementation of such projects may be subject to approval by 
the Government of the Russian Federation. T hus, the Federal Law of 18 July 2011 No. 223 as 
amended by the Federal Law of 13 July 2015 No. 249-FZ is in full compliance with the WTO 
obligations of the Russian Federation. 
 
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