G/TRIMS/Q/RUS/9  
 
22 March 2018  
(18-1747) Page: 1/5 
Committee on Trade -Related Investment Measures  Original: English  
 
RUSSIAN FEDERATION – MEASURES IM PLEMENTING RUSSIA'S  
IMPORT  SUBSTITUTION POLICY  
REPLIES TO QUESTIONS FROM THE U NITED STATES1 
The following communication, dated 19 March 2018 , is being circulated at the request of the 
Delegation of the Russian Federation . 
 
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Question s 
 
Attached to this document is a list of measures which could have relevance to the TRIM s 
Committee.  We acknowledge that the information we have been able to obtain is 
incomplete.  With respect to each of the measures described belo w, we request the 
Russian Federation to help Members to understand these measures by addressing the 
following questions:  
 
1. Is the description provided of each measure accurate?  If it is not, please provide a 
better description of the measure . 
 
2. Where c an Member s find additional information about each listed measure?  
 
3. With respect to each measure, please explain whether the measure requires use of 
Russian -made goods or otherwise may implicate the obligations of the TRIM s 
Agreement.  
 
4. With respect to  each measure, please explain whether there are additional aspects 
of the measure that could favor domestic companies.  For example, if a measure 
encourages or requires purchasing from small - and medium -sized enterprises (SMEs), 
can the obligation be fulfil led by purchasing from foreign SMEs?  
 
5. What is the current status of each listed measure?  A number of the measures refer 
to deadlines (e.g. , by which implementing laws or regulations  must be drafted ) which 
have passed.  In these cases, please inform Membe rs whether the deadline was met , and 
whether any implementing laws or regulations have gone into effect . Where a deadline 
is in the near future, please inform Members of whether the government anticipates 
being able to meet it.  
 
1. Decision No. 5  from the  17 April 2015 meeting between PM Medvedev and the 
President's Council on Modernization and Innovative Development in Russia, 
directing the Ministries of Finance, Economic Development, Natural Resources and 
the Environment, and Energy to draft, by 14  July 2015, a federal law to amend the 
Tax Code of the Russian Federation, in order to provide an economic stimulus for 
the use of Russian technology, equipment, components, software, and services 
while conducting geological -exploratory work by means of deductio ns for 
expenses associated with such work.  
 
                                                
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  Reply  
 
To date no legal acts implementing the decision have been developed.  
 
2. Decision No. 6  from the 17 April 2015 meeting between PM Medvedev and the 
President's Council on Modernization and Innovative Develo pment in Russia, 
directing the Ministries of Economic Development, Natural Resources and the 
Environment, Industry and Trade, and Energy to present to the Government, by 
25 June 2015, proposals for creating a system for stimulating the use of Russian 
techn ology, equipment, components, software, and services by mining and mining 
service organizations, including by means of the introduction, from 
1 January  2016, of tax preferences depending on the shares of such equipment in 
the production process and includi ng the establishing of obligations on mining 
service organizations receiving state support for the financing of research and 
development to purchase innovative domestic technology, equipment, 
components, software, and services.  
 
Reply  
 
To date no legal act s implementing the decision have been developed.  
 
3. Decision No. 7  from the 17 April 2015 meeting between PM Medvedev and the 
President's Council on Modernization and Innovative Development in Russia, 
directing the Ministry of Industry and Trade, together  with the Ministries of 
Natural Resources and the Environment, Energy, Defense, and others, to draft 
legal and regulatory acts, by 25 June 2015, approving a list of equipment, 
components, software, and services for conducting geological -exploratory and 
extracting work in discovering and mining hard commercial minerals which are 
suitable for import substitution in a short -, medium -, and long -term timeframe.  
 
Reply  
 
To date no legal acts implementing the decision have been developed.  
 
4. The Ministry of Indus try and Trade issued Order No. 645  of 31 March 2015 ("On 
approval of the schedule of measures on import substitution in oil -and-gas 
machine building industry"), which establishes local content requirements that 
must be met in order to obtain a license to d evelop a new oil field. The Order lists 
the maximum percentage of foreign -produced equipment, technologies, services, 
and software that can be used in the oil and gas industry, with the percentages 
declining from 2014 to 2020.  
 
Reply  
 
The Order of the Min istry of Industry and Trade (MIT) of the Russia n Federation No 645 of 
31 March  2015 sets a list of products, technologies, services and software (in oil and gas machine 
building industry) which are planned to be developed in the future  (so called "plan") and 
establishes a coordinating function of the MIT in implementation the "plan". According to the 
Order , the MIT coordinates selection of enterprises that would participate in implementation of the 
"plan" and develop the listed products . In addition, the MI T is the leading authority in the 
legislative process relating to  application of state support measures and monitor ing of 
implementation  of the "plan". The Order does not have any provisions with regard to obtaining 
licenses.  Currently t he Order is in forc e. 
 
5. Order of the Government of the Russian Federation, No. 286 -r, dated 
23 February  2015, allocates 2 billion rubles to RosAgroLeasing for the purpose of 
implementing a program of "preferential leasing" of modern, high -performance 
agricultural equipment  of Russian production (likely to increase demand for 
domestically -produced agricultural equipment) and the "support of exports."  
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  Reply  
 
The Decree of the Government of the Russian Federation No 286 -r of 23 February 2015 was 
adopted in order to guarantee financial stability and fulfilment  of obligations  by 
JSC "Rosagroleasing ". It is an anti -crisis measure for 2015 , and it is 2015  when the funds for this 
measure were allocated. There are no plans to extend the period of application of the Decree.  
 
6. Feder al Law No. 249 -FZ (dated 13 July 2015), among other things, amended the 
Federal Law "On the Procurement of Goods, Works, and Services by Certain Legal 
Entities," (Federal Law No. 223 -FZ dated 18 July 2011). The amendments in 
Federal Law No. 249 -FZ, togethe r with Resolution No.  785, dated 4 August 2015, 
established a "Governmental Commission on Import Substitution," which was first 
constituted on 11 August 2015. As of 1 January 2016, the Commission assumed 
responsibility for coordinating and approving procur ements of machinery and 
equipment for investment projects by SOEs, state corporations, or private 
businesses (if the government's direct support to the project is 10 per  cent or 
more). The decisions of this Agency, including the list of equipment that may be 
purchased abroad, may not be made public. The Explanatory Note to the bill that 
became Federal Law No. 249 -FZ noted that the amendments to Law No. 223 -FZ 
were intended to grant the Russian Government the authority to establish specifics 
of procurement p lans and tender rules for procurement by specific entities or 
procurement of specific goods, works and ser vices by state -owned 
companies,  including during implementation of in vestment projects. 
[Explanatory  Note to the Draft Federal Law No 750892 -6, "On Am ending the 
Federal Law 'On the Procurement of Goods, Works, and Services by Certain Legal 
Entities',"  introduced  into the State Duma on 24 March 2015 
("Пояснительная  записка к законопроекту" located at  
http://asozd2.duma.gov.ru/main.nsf/%28SpravkaNew%29?OpenAgent&RN=750
892-6&02 .] 
 
Reply  
 
The Federal Law No. 249 -FZ of 13 July 2015 introduced certain amendments to the Federal Law 
No. 223-FZ of 18 July 2011. These amendments came 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. 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.  The Laws do not set any requirements to use domestic 
over imported goods.  Both Laws are currently in force.  
 
7. The Resolution of the Government of the Russian Federation No. 451  (dated 
8 May 2015), allocates 2.5 billion rubles to a new program to stimulate automobile 
leasing  and the production and sale of Russian -produced automobiles. Under the 
program, funds will be provided to Russian automotive leasing companies that 
agree to provide up -front discounts to individual customers. The Resolution 
references the "Automobile Indu stry" subprogr am of the Russian State 
Program  "On the Development of Industry and Increasing its Competitiveness." 
The document announcing the Resolution ( located at  
http://govenrment.ru/docs/18099 ) indicates  that the principal expected result of 
the support program is an increase in the production and sale of Russian 
automobile equipment.  
 
Reply  
 
The Resolution of the Government of the Russian Federation No. 451 of 8 May 2015 does not 
stimulate "the producti on and sale of Russian automobile equipment ". It does not impose any 
limitation or restriction on country of origin of vehicles and does not set any requirements to use 
domestic over imported goods. The Resolution is aimed to support the leasing of automob iles 
irrespective of the ir origin.  The Resolution is currently in force.  
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  8. Resolution of the Government of the Russian Federation No. 1442 (dated 
24 December  2015)  ("On procurement of innovative products, high -tech products 
certain types of legal entitie s and amending certain Acts of the Russian 
Federation") sets forth procedures for establishing the annual volume of 
purchases by SOEs of innovative and high -tech products, including a minimum 
volume of purchases that must be made from SMEs. Resolution No. 717 (dated 
19 April 2016) identifies the 135 SOEs that are subject to the minimum SME 
purchasing requirements.  
 
Reply  
 
The Resolution of the Government of the Russian Federation No. 1442 of 25 December 2015 is 
aimed at establishing a procedure of procurem ent of high -tech and innovative products including 
procurement from SMEs, as well as requirements to annual reports on such procurement and form 
of such reports. The Decree of the Government of the Russian Federation No. 717-r of 
19 April 2016 establishes the list of customers the procurement plans of which are subject to 
assessment of conformity with the Russian legislation that envisages participation of SMEs in 
procurement, made by the regional authorities or organizations established by them.  The 
Resolu tion and the Decree have no restrictions regarding the origin of goods that are purchased.  
The Resolution and the Decree are currently in force.  
 
9. Order No. 2258 -r (dated 6 November 2015) ("On Approving the List of Specific 
Purchasers Whose Draft Plans f or 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 of Small and Mediu m Business' before their 
Confirmation for Compliance with the Requirements of Russian Legislation 
Providing for the Participation of Small and Medium Enterprises in Purchasing") 
extends the government's control over certain SOE's purchases. The Order 
ident ifies 35 SOEs (including Gazprom, Rosneft, Russian Railways, and Aeroflot) 
whose purchasing plans for hi -tech, innovative, and pharmaceutical products must 
be assessed by the Federal Corporation for Development of Small and Medium -
sized Business  to ensure participation of SMEs in the SOEs' purchases.  
 
Reply  
 
The Decree of the Government of the Russian Federation No. 2258-r of 6 November 2015 
establishes the list of customers the procurement plans of which are subject to assessment of 
conformity with the Rus sian legislation that envisages participation of SMEs in procurement on a 
non-discriminatory basis . This assessment is  made by the JSC "Federal Corporation for 
Development of Small and Medium -Sized Business ". The Decree is  currently  in force.  
 
10. Law 488 -FZ (dated 31 December 2014) ("On Industrial Policy") and Resolution No. 
708 (dated 16 July 2015) ("On Special Investment Contracts in Certain Spheres of 
Industry") together created "Special Investment Contracts" (SPIC) as another 
vehicle available to inves tors to engage in import substitution programs. An 
investor who signs a SPIC will receive government benefits (such as tax 
preferences) if the investor agrees to create or modernize a manufacturing 
industry in order to assimilate manufacture of industrial products in Russia; 
introduce the best available innovative technology into a manufacturing industry; 
and/or assimilate the manufacturing of products currently without analogues 
produced in Russia. At a meeting on 26 April 2016, Prime Minister Medvedev 
admitted that pending legislative amendments provide that businesses that sign 
up for a SPIC may be granted the status of "sole supplier" for government 
procurement purposes. ( http://government.ru/news/22797/ ) 
 
Reply  
 
The Federal Law No. 488-FZ of 31 December 2014 regulates relations in the area of development 
and implementation of  industrial policy between economic entities , organizations providing support 
infrastructure for such activities  as well as  federal, regional and local authorities . Article 16 of the 
Law stipulates that Special Investment Contracts (SIC)  may be concluded  in order to attract G/TRIMS/Q/RUS/9  
 
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  investments to the Russian economy . They are not  "vehicle [s] available to investors to engage in 
import substituti on programs ". They do not set any requirements for the ir participants to use 
domestic over imported goods.  Besides, the Law does not grant any specific  status to SIC 
participants in terms of government procurement . The Resolution No. 708 of 16 July 2015 se ts out 
rules of concluding SIC s and a standard form of such contracts. It does not establish any 
incentives or introduce any requirements for purchasing of goods originating in Russia.  The Law 
and the Resolution are  currently  in force.  
 
11. Assignment 168( 1) resulting from the 1st Russian Forum "Internet Economy" on 
2 December 2015 instructed Russia's Ministry of  Economic Development, 
Ministry  of Communications, and Ministry of Industry and Trade – together with 
the interested federal executive bodies and t he Autonomous 
Noncommercial  Organization ("ANO") "Institute of the Internet Development" – to 
submit proposals on the introduction of chang es to legislation to 
ensure  the priority of Russian -produced software and e quipment when 
making  purchases.  The propos als are due 1 June 2016. 
http://www.kremlin.ru/acts/assignments/orders/51235#sel=1:2,1:2  
 
Reply  
 
To date no legal acts implementing the decision have been developed.  
 
12. Assig nment 168(6)  resulting from the 1st Russian Forum "Internet Economy" on 
2 December 2015 instructed Russia's Ministry of Economic Development, Ministry 
of Industry and Trade, Ministry of Communications, and the Federal Service for 
Technical and Export Contr ol – together with the interested federal executive 
bodies and ANO "Institute of the Internet Development" – to submit proposals for 
creating the Centre of Import Substitutions in the Sphere of Information and 
Communication Technologies. The proposals were  due 1 April 2016. 
http://www.kremlin.ru/acts/assignments/orders/51235#sel=1:2,1:2  
 
Reply  
 
The Center of Import Substitution in the Sphere of Information and Communication Technology 
was created. The activities of the Center are aimed at solving practical, methodological and 
organizational issues related to the implementation of the state policy of import substitution  in the 
area of i nformation and communication technol ogies. 
 
13. The Ministry of Communications and Mass Media has proposed an IT Development 
Fund  (http://minsvyaz.ru/ru/events/34921/ ) to provide venture capital to 
domestic information technology (IT) companies to d esign and market products. 
The fund may also divert 250  million rubles ($3.8 million) to promote Russian 
software exports and 50 million rubles ($759,000) to establish an import 
substitution center monitoring government IT procurement bids, according to 
Vedomosti .  
 
Reply  
 
In accordance with the Resolution of the Government of the Russian Federation No.  57 of 
24 January 2017  the Russian Information Technology Development Foundation was created . It 
supports scientific , technical and innovative activities  in the area of i nformation technology 
development . 
 
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