BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/36
Russia’s new law on public-sector-owned companies’ procurements entered into force in 2012 and was amended last time in the summer. Public-sector-owned companies are now required to register online and announce all procurements exceeding a specified ruble amount on the website. Nearly 80,000 firms have registered, and the total value of announced procurement contracts corresponds to almost a quarter of Russian GDP. A handful of large firms make most of the procurements (e.g. Rosneft, Gazprom and the national railways RZD). The new law aims at increasing transparency, competitiveness and efficiency in procurements.
On the other hand the current objective of import substitution has resulted in several government proposals which could rather have opposite effects. The government is seeking e.g. a greater say in supplier selection in large procurements, limits on the use of imported goods and services, and minimum quotas on the share of innovative products in procurements.