G/TRIMS/Q/RUS/4  
 
26 May 2016  
(16-2849)  Page: 1/4  
Committee on Trade-Related Investment Measures  Original: English  
 
 RUSSIAN FEDERATION – MEASUR ES IMPLEMENTING RUSSIA'S 
IMPORT SUBSTITUTION POLICY 
QUESTIONS FROM THE UNITED STATES 
The following communication, dated 24 May 2016, is  being circulated at the request of the 
Delegation of the United States.  
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The United States has noted during prior meetings of the WTO Committee on Trade-Related Investment Measures a growing emphasis in the Ru ssian Federation on local content requirements 
and import substitution policies. 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 "Anti-Crisis Plan." An important element of the plan is the call for government action to 
support import substitution. 
 We recognize that many provisions of the Anti-Crisis Plan relate to government procurement, 
outside the scope of the TRIMs. However, we have  a number of indications that certain steps being 
taken by the Russian government may go beyond government procurement. 
 Attached to this document is a list of measures which could have relevance to the TRIMs 
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 measur e accurate? If it is not, please provide a 
better description of the measure. 
 
2. Where can Members find additional information about each listed measure? 
 3. With respect to each measure, please ex plain whether the measure requires use of 
Russian-made goods or otherwise may im plicate the obligations of the TRIMs 
Agreement.  
4. With respect to each measure, please ex plain whether there are additional aspects 
of the measure that could favor domestic  companies. For example, if a measure 
encourages or requires purchasing from sm all- and medium-sized  enterprises (SMEs), 
can the obligation be fulfilled by  purchasing from foreign SMEs? 
 5. What is the current status of each list ed measure? A number of the measures refer 
to deadlines (e.g., by which implementing la ws or regulations must be drafted) which 
have passed. In these cases, please inform  Members whether the deadline was met, and 
whether any implementing laws or regulation s have gone into e ffect. Where a deadline 
is in the near future, please inform Memb ers of whether the government anticipates 
being able to meet it.  
  
 
 G/TRIMS/Q/RUS/4 
 
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  1. Decision No. 5 from the 17 April 2015 meetin g 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 conduc ting geological-exploratory work by means 
of deductions for expenses associated with such work. 
 
2. Decision No. 6 from the 17 April 2015 meetin g between PM Medvedev and the President's 
Council on Modernization and Innovative Development 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 technology, 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 including the establishing of obligations on mining service organizations receiving state support for the financing of research and development to 
purchase innovative domestic technology, eq uipment, components, software, and services. 
 3. Decision No. 7 from the 17 April 2015 meetin g 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 Ministri es of Natural Resources and the Environment, 
Energy, Defense, and others, to draft legal an d regulatory acts, by 25 June 2015, approving 
a list of equipment, components, software , and services for conducting geological-
exploratory and extracting work in discoverin g and mining hard commercial minerals which 
are suitable for import substitution in a short-, medium-, and long-term timeframe. 
 
4. The Ministry of Industry 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 develop 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.  
 
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-perfo rmance agricultural equipment of Russian 
production (likely to increase demand for domestically-produced agricultural equipment) and 
the "support of exports." 
 6. Federal Law No. 249-FZ (dated 13 July 2015), among other things, amended the Federal 
Law "On the Procurement of Goods, Works, and Se rvices by Certain Legal Entities," (Federal 
Law No. 223-FZ dated 18 July 2011). The amendments in Federal Law No. 249-FZ, together 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 c oordinating and approving procurements 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 specifi cs of procurement plans and tender rules for 
procurement by specific entities or procuremen t of specific goods, works and services by 
state-owned companies, including during implementation of investment projects. 
[Explanatory Note to the Draft Federal Law No 750892-6, "On Amending 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=750892-
6&02.] G/TRIMS/Q/RUS/4 
 
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  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 auto mobiles. Under the program, funds will be 
provided to Russian automotive leasing compan ies that agree to provide up-front discounts 
to individual customers. The Resolution refe rences the "Automobile Industry" subprogram 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.  
 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 entities 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.  
 
9. Order No. 2258-r (dated 6 November 2015) ("On  Approving the List of Specific Purchasers 
Whose Draft Plans for Purchases of Goods, Work s, 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 'Feder al Corporation for the Development of 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") extends the government's control over certain SOE's purchases. The Order 
identifies 35 SOEs (including Gazprom, Rosn eft, 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. 
 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 investors 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/ ) 
 
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 the Autonomous Noncommercial Organization ("ANO") "Institute of the Internet Development" – to submit proposals on the introduction of changes to legislation to 
ensure the priority of Russian-produced soft ware and equipment when making purchases. 
The proposals are due 1 June 2016. http://www.kremlin.ru/acts/assign ments/orders/51235#sel=1:2,1:2  
 
12. Assignment 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 Communication s, and the Federal Service for Technical and 
Export Control – 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/assign ments/orders/51235#sel=1:2,1:2  G/TRIMS/Q/RUS/4 
 
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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 design and market products. The fund may also divert 
250 million rubles ($3.8 million) to promote Ru ssian software exports and 50 million rubles 
($759,000) to establish an import substitution center monitoring government IT procurement bids, according to Vedomosti .  
 
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