1. Diplomatic Academy of Vienna
Symposium EU-RUSSIA TRADE LAW AND POLICY RELATIONS Government Procurement Agreement (GPA) and Russian public procurement rules: current status and key issues
Dariya Molchanova,
PhD Researcher, ESI, MGIMO University
Diplomatic Academy of Vienna
July 3, 2017

2. GPA: principles and coverage
July 3, 2017
GPA: principles and coverage
Principles
Non-Discrimination
Transparency
Procedural Fairness
GPA only applies to procurement of goods, services, or any combination thereof, as specified in each Party's schedules to the Agreement (i.e., Annexes to Appendix I):
Annex 1, the central government entities whose procurement is covered by the Agreement
Annex 2, the sub-central government entities whose procurement is covered by the Agreement
Annex 3, all other entities whose procurement is covered by the Agreement
Annex 4, the goods covered by the Agreement
Annex 5, the services, other than construction services, covered by the Agreement
Annex 6, the construction services covered by the Agreement
Annex 7, any General Notes

3. Existing Russian public procurement legal framework
July 3, 2017
Existing Russian public procurement legal framework
Key federal laws regulating public procurement in Russia:
Federal Law No. 44-FZ "On contractual system in the sphere of public procurement of goods, works, services for state and municipal needs" of 5 April 2013 (the Law 44-FZ) and
Federal Law No. 223-FZ "On procurement of goods, works, services by certain types of legal entities" of 18 July (the Law 223-FZ)
There are also different subordinate legal acts (usually in the form of RF Government Regulations) that set forth some peculiarities for public procurement process (in relation to procurements according to both Law 44-FZ and Law 223-FZ)
Law 44-FZ explicitly provides for a right of the RF Government to ban or restrict the procurement of goods, works, services from foreign entities in certain cases (protection of the constitutional system, protection of state defense etc. – see par. 3 of article 14 of Law 44-FZ)
Law 223-FZ explicitly provides for a right of the RF Government to establish a priority for procurement of goods, works, services from Russian entities (see subpar. 1) of par. 8 of article 3 of Law 223-FZ)

4. Types of public procurement
July 3, 2017
Law 44-FZ
It is used for procurement of goods, works and services by state and municipal bodies, State Corporation "Rusatom" (but not by all of its subsidiaries), State Corporation "Roscosmos", management body of a state non-budgetary fund, state public institution acting on behalf of Russian Federation or a constituent entity
Types of public procurement
Tenders
Auctions
Request for quotation
Request for proposals
public
closed
electronic
with limited participation
closed with limited participation
closed
two-stage
closed two-staged

5. July 3, 2017
Law 223-FZ
Law 223-FZ regulates the basics of procurement of goods, works and services for the following (there are, however, exclusions) legal entities (the Entities Concerned):
state corporations (save for Rusatom and Roscosmos), state companies, public law companies, natural monopolies, regulated legal entities (electricity supply, heating supply, waste management, water supply and wastewater disposal), state unitary enterprises, municipal unitary enterprises, autonomous enterprises and commercial legal entities where over 50% of the shares belong to the Russian state, a RF constituent entity or a municipality)
commercial legal entities where over 50% of the shares belong to the entities listed under the first dash above
commercial legal entities where over 50% of the shares belong to the entities listed under the second dash above
budgetary enterprises in certain cases
Law 223-FZ does not establish tendering procedures itself, but requires Entities Concerned to adopt their own internal procurement regulations with an exhaustive list of procurement procedures applicable by relevant entity

6. Current status of negotiations
July 3, 2017
Current status of negotiations
Russia joined WTO and Pledged to to initiate negotiations on its accession to GPA in 4 years
August 2012
Russia applied for accession to the GPA
August 2016
GPA Committee meeting
The initial market access offer was discussed
June 2017