Forced procurement

Forced procurement

The government begins a new stage in the coercion of state-owned companies for import substitution.

The Ministry has prepared an extensive list of machinery, equipment and materials that state-owned companies from 1 July will not be able to buy abroad without the consent of the governmental Commission on import substitution.

It includes including airplanes, helicopters, passenger and cargo vessels with an annual purchasing volume of over 50 million rubles.

According to interlocutors, “b”, or the list will reduce, and the price level will raise or the procedure will turn into a “parade of exceptions.”

The Ministry has prepared a list of engineering products and services that state-owned companies (with state share 50%) will be able to buy abroad only after consultation with the state Commission on import substitution (the draft resolution was published on “Kommersant” wrote about this idea September 11, 2017, at the end of the year, the Board approved amendments to the law on procurement by state companies (223-FZ), which will enter into force on 1 July.

The point is that the state Commission shall verify the existence of Russian analogues and to force state companies to buy them.

The original question was about the procurement primarily of aircraft, helicopters and ships, but the final list consists of 227 items. In particular, there were construction materials (e.g. cement), mining equipment, tower cranes, road construction machinery, etc. There are a number of positions for the oil and gas industry, such as drilling rigs, pumps (including hydraulic fracturing), floating platforms, and is also largely purchased abroad rotary systems and equipment for the production of LNG. Will have to coordinate procurement of power grid equipment, generators and steam boilers, but not the turbines, which was associated with a scandal of 2017 in the field of import — redirection to the Crimea structures Rostec gas turbines Siemens.

The list includes cars, planes, helicopters, ships (both passenger and cargo, including tankers), and state-owned companies will have to negotiate not only the purchase of this product, but also its leasing or freight. Finally, in the list of machines, special vehicles (snow ploughs and trailers to ATVs and snowmobiles) and a number of other positions, such as warships, cyclotrons, scanners and space rockets.

In “assistance” mechanism is supported, noting that it “will stimulate the demand for Russian products complying with all quality requirements and cost”. In other major state-owned companies declined to comment, as in the ministries.