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WT/DS604 - Russian Federation - Measures on procurements by State-related entities and other entities in charge of investment projects with State support

Last update: 30/08/2021

  • Complaint by: EU
  • Complaint against: Russian Federation
  • Third parties:
Summary of case:

Since 2015, Russian has adopted and expanded several measures that restrict or prevent EU companies from selling goods and services to Russian State-owned enterprises and other entities through procurement for commercial purposes. These practices aim to favour domestic products and services from Russian suppliers. On 22 July 2021, the EU requested consultations with Russia in particular on three measures: • Discriminatory assessments of procurement bids: during the assessment phase in their procurements, certain State-related entities deduct 15% (up to 30% for certain products) from the offered price for domestic products or services of Russian entities. If the bid with domestic products or services of a Russian entity is then selected, the full price is subsequently still paid. This means that imported products or services of foreign entities are looked at less favourably during this assessment phase, because they do not benefit from this 15% price reduction. This gives rise to discrimination against bids with imported goods or services provided by foreign entities. • Requirements for prior authorisations: Russian companies that want to procure certain engineering products abroad need an authorisation by Russia's Import Substitution Commission. This authorisation appears to be given on an arbitrary basis and is not needed for purchasing domestic engineering products. • National quota requirements in procurement: for around 250 products, including vehicles, machinery, medical devices and textile products, where up to 90% have to be domestic products.

Relevant WTO provision:

- Article 2 of the Protocol on the Accession of the Russian Federation in conjunction with theReport of the Working Party on the accession of the Russian Federation to the WTO, and in particular paragraphs 98,99and 1450 - Article III:4, XI and XVII:1(c) of the GATT 1994 - Article XVII:1 of the GATS

Consultation:

Date of request:

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