Aluminium Association took part in the preparation of Russian Government resolutions that introduced bans and restrictions on the admission of foreign industrial goods for the purpose of public procurement. The resolutions (Nos. 616 and 617) entered into force upon their official publication on the government website in May 2020 (as for automotive products, it comes into force on July 1st, 2020).
The approved regulations establish a unified approach to import substitution in all market segments, unify the procedure to confirm the country of origin of the industrial goods and the requirements for its purchase. The types of products restricted for admission to public procurement are selected on the basis of an official list of competitive Russian products that are necessary for the implementation of national projects.
Resolution No. 616 establishes a ban on the admission of more than 120 foreign goods (with the exception of those produced in the EAEU) for the purposes of state procurement, At the same time, there is a number of exceptions: when the goods to be procured are not produced in Russia, when buying spare parts required under technical documentation for servicing machinery and equipment, etc.
Resolution No. 616 listed the following aluminium products:
Resolution No. 616 replaces the previously regulations prohibiting the admission of foreign goods become null and void, including: No. 656 (mechanical engineering), No. 1072 (furniture), No. 9 (defence), No. 791 (light), No. 239 (machine tool industry).
Resolution No. 617 approved restrictions on admission of certain types of foreign goods (with the exception of those produced in the EAEU) through the introduction an “odd-man-out” rule. This rule means that if at least two bids with goods originating from the Russian Federation or EAEU countries are submitted for participation in the state procurement, bids with foreign goods are rejected (more than 170 types).
In terms of aluminium products, Resolution No. 617 included:
The preparation of these regulations was carried on the basis an Action Plan for the development of the aluminium industry for 2018–2023, approved by the Deputy Prime Minister of the Russian Federation, and with the direct participation of the Aluminium Association. Therefore, lists of goods subject to bans and restrictions on public procurement, were developed with due regard to the needs of the aluminium industry.
These resolutions ensure import substitution in various aluminium-consuming industries, to improve incentives for production and purchase of Russian aluminium products and, thereby, increase the consumption and processing of aluminium in Russia.