G/TRIMS/W/149  
 
27 March 2015  
(15-1723)  Page: 1/1  
Committee on Trade-Related Investment Measures  Original: English  
 
 RUSSIAN FEDERATION – LOCAL CONTENT REQUIREMENTS FOR PURCHASES  
BY STATE-OWNED ENTERPRISES 
QUESTIONS FROM THE UNITED STATES 
The following communication, dated 25 March 2015, is being circulated at the request of the 
Delegation of the United States. 
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 The United States is concerned about a growing emphasis in Russia 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. In fact, the Government of Russia has already taken steps to 
implement this import substitution strategy for medical devices. On 5 February 2015, the Russian 
Government adopted Resolution No. 102, "Establishing Market Entry Restrictions for Individual Types of Medical Devices Originating from Foreign Countries in the Context of Procurement for 
State and Municipal Needs." According to the Resolution, certain foreign-made medical devices are 
not eligible for state and municipal government pr ocurement 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 preparing to expand these kinds of requirements beyond 
government procurement. It is our understanding that Russia is considering applying requirements 
to purchase Russian-made inputs to state-owned en terprises as well. Proposed amendments to the 
Federal Law No. 223 (dated 18 July 2011) will allow the Russian Government to "establish specifics 
of procurement plans and tender rules for procur ement by specific entities or procurement of 
specific goods, works and services by state-owne d companies, including during implementation of 
investment projects." The Explanatory Note de scribing the proposed amendments acknowledges 
that the current law could be viewed as inconsistent with Russia's WTO obligations.
1 
Notwithstanding this concern, and a stated desire 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 amen dments 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? 
 
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1 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."