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Law on support of customers and participants in government procurement under sanctions pressure

April 16, 2022

The President signed Federal Law On Amendments to Certain Legislative Acts of the Russian Federation.

The Law introduces amendments to legislation to support customers and participants in the government procurement under sanctions pressure.

The Law aims to mitigate the repercussions of restrictive measures towards Russia by unfriendly foreign states and to render support to the customers and participants of procurement orders for government and municipal needs as well as procurement by state corporations, state companies and a number of other legal entities in the current economic situation. The changes involve, in particular, payment due dates for goods and services; the procedure of concluding contracts; posting procurement information in the closed part of the unified procurement information system which ensures the confidentiality of such information.

In addition, some amendments are introduced to Federal Law On the Contract System in the Procurement of Goods, Works and Services for State and Municipal Needs. Thus, the use of foreign currency is banned in determining and validating the contract price concluded with a single provider except for the cases such prices and valuations are determined by the customer operating on the territory of a foreign country.

Also, the Law expands the list of customers who are entitled to make purchases using closed competitive methods of identifying suppliers. The Government of the Russian Federation has the right to inlcude in this list those customers againt whom political or economic sanctions were imposed and/or restrictive measures were applied.

April 16, 2022