BOFIT Viikkokatsaus / BOFIT Weekly Review 2017/37

Russia's import restrictions in recent years have been aimed at supporting domestic producers under an import substitution policy. Current import restrictions on public sector procurements already range from pharmaceuticals and food to software. A new government decree prohibits public sector purchases of select imported furniture and wooden veneers from December 1. The ban applies to imports from outside the Eurasian Economic Union and lasts two years.

The Duma also received a bill to tighten oversight of procurement of imported goods and services in state-owned companies and companies receiving state support. At the moment, procurement rules e.g. grant domestic producers a 15 % price advantage. Large investments in imported machinery also require approval from the import substitution commission. The bill calls for expanding the list of procurements needing commission approval to include e.g. ships and aircraft in order to protect the interests of domestic producers. In addition, the requirements for state-owned enterprises are to be extended to apply also to their subsidiaries.

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