30.01.2014

Overview Of Certain Important Changes To Russian Laws Effective As Of January 2014

The Federal Law dated 05.04.2013 No. 44-FZ "On Contractual System in the Domain of Purchases of Goods, Works and Services for State and Municipal Needs" (hereinafter – the "Law No. 44-FZ") the most of the provisions of which entered into force on 1 January 2014 replaces the Federal Law dated 21.07.2005 No.94-FZ "On Placement of Orders for Procurement of Goods, Works and Services for State and Municipal Needs" (hereinafter – the "Law No. 94-FZ"). Law No. 44-FZ regulates the relations in connection with purchases of goods, works and services for state and municipal needs (hereinafter – the "state procurement") from the stage of their planning through the evaluation of their efficiency. 

It provides for the establishment of the contractual system in the domain of the state procurement that comprises the participants of such contractual system (in particular, state and municipal customers, providers and suppliers) and their actions aimed at satisfaction of the state and municipal needs, and introduces material changes to the rules for the state procurement concerning the state and municipal customers as well as other parties participating in the state procurement. 
Law No. 44-FZ introduces new methods for determination of providers (suppliers) in addition to the methods that were provided for by Law No. 94-FZ, in particular, tender with limited participation, two-stage tender and request for offers. It is established that an open auction may be conducted only in electronic form.
The rules for determination of the initial price of a state contract, the rules for appraisal of the bids for participation in the state procurement, the rules for amending and rescission of the state contracts, the rules for supervision over the state and municipal customers are changed. Law No. 44-FZ establishes as well the requirements to performance of the executed contracts. 
The Federal Law dated 28.12.2013 No. 396-FZ "On Amending Certain Laws of the Russian Federation" which is also effective from 1 January 2014 amends numerous federal laws with the aim to bring them in compliance with Law No. 44-FZ. 
In particular, amendments to the Federal Law No. 135-FZ dated 26 October 2006 "On Protection of Competition" provide for new antimonopoly requirements to tenders, requests for quotes for the prices of goods, requests for offers as well as the requirements for entering into contacts with financial organizations and with respect to the state and municipal property. 
Certain provisions of the Code for Administrative Offences of the Russian Federation regarding liability for offences in connection with the state procurement are amended. 
A number of the decisions of the Government of the Russian Federation and other normative acts adopted for the purposes of implementation of the provisions of Law No. 44-FZ also came into force on 1 January 2014 which, in particular:

  • determine an amount of the initial price of a contract upon increase of which a participant of the state procurement should provide additional data; 
  • provide for the maximum amount of the price of a contract for state procurement of medicines upon increase of which the medicines with different international non-patented names cannot be procured under a single contract; 
  • clarify the requirements for a contract of energy servicing; 
  • establish the list of banks in which an operator of electronic platform opens accounts for keeping the money contributed as security for bids, requirements to financial stability of such banks as well to contracts entered into by such banks and operators of electronic platforms; 
  • establish the requirements to a form of a banking guaranty used for the purposes of Law No. 44-FZ and the rules for maintaining and placing of banking guaranties in the uniform information system in the domain of state procurement; 
  • provide for the list of goods, works and services for the state procurement of which a customer should conduct an electronic auction.


The Federal Law No.423-FZ dated 28 December 2013 "On Amending the Federal Law on Protection of Competition" which comes into force on 30 January 2014 abolishes the requirements for notification of the Federal Antimonopoly Service of the Russian Federation (FAS) on entering into transactions and performing other actions provided for by Article 30 of the Federal Law No. 135-FZ dated 26 October 2006 "On Protection of Competition", in particular, the following:

  • merger of profit-making entities or accession to a profit-making entity of one or more profit-making entities if the aggregate asset value accession under the latest balance sheet of the entities participating in the merger or their aggregate revenue earned by them during the preceding year exceeds RUB 400 million; 
  • merger of financial organizations or accession to a financial organization of one or more profit-making entities if the aggregate asset value of the entities participating in the merger or accession and their group of persons exceeds the amount established by the Government of the Russian Federation;
  • acquisition of more than 25%/50%/75% of the voting shares in a Russian JSC or more than ⅓ / 50% / ⅔ of the participatory interests in a Russian LLC (the target company) or acquisition of more than 50% of the voting shares of, or any right of control over, a legal entity incorporated outside Russia, or the right to perform the functions of its executive bodies (if such foreign legal entity controls a Russian subsidiary, or such foreign legal entity supplied goods to the Russian Federation worth more than RUB 1 billion during the year preceding the transaction) where the aggregate book value of the assets under the latest balance sheet or the aggregate revenue earned by the acquirer together with its group of persons and the target together with its group of persons during the preceding year exceeds RUB 400 million and the balance sheet value of the total assets of the target company and its group exceeds RUB 60 million;
  • acquisition of the right of ownership or the right to use the main production (fixed) assets located in Russia or intangible assets of a Russian or foreign entity (subject to certain exceptions provided in the Competition Law), if the acquired assets account for more than 20% of the aggregate book value of the main production (fixed) assets and intangible assets of the selling entity where the aggregate book value of the assets under the latest balance sheet or the aggregate revenue earned by the acquirer together with its group of persons and the target together with its group of persons during the preceding year exceeds RUB 400 million and the balance sheet value of the total assets of the target company and its group exceeds RUB 60 million;
  • acquisition of rights conferring the ability to determine the commercial activity of the target company (including as a result of change of indirect control over the target company) or the right to perform the functions of its executive bodies where the aggregate book value of the assets under the latest balance sheet or the aggregate revenue earned by the acquirer together with its group of persons and the target together with its group of persons during the preceding year exceeds RUB 400 million and the balance sheet value of the total assets of the target company and its group exceeds RUB 60 million.

Furthermore, in accordance with the Federal Law No.343-FZ dated 2 December 2013 "On Amending Article 19.8. of the Code for Administrative Offences of the Russian Federation" which came into force on 3 January 2014 the minimum amount of an administrative fine with respect to legal entities for a failure to provide or untimely provision of the required information as well provision of knowingly false information to FAS required under antimonopoly laws is decreased from RUB 300,000 to RUB 50,000.