To facilitate the growth of the local business community it is forbidden for corporations registered in the off-shore jurisdictions to bid for Russian government procurements. The law went into effect August 13, 2015. Countries and territories designated as ‘off Shore Jurisdictions’ are named in the RF Tax Code (Amendment 1 Clause 3 Article 284).
Since the law came into effect operators of the electronic trading platforms are now required to cease off-shore corporations and once they have registered operations in Russia they will receive accreditation. It is important to note that corporations registered in the off-shore jurisdictions can no longer participate in an electronic tender, even if the announcement about the government tender was placed and the relevant application documents were prepared before August 13, 2015. The commission in charge for government procurements is obliged to check if participants are compliant.
In case of non-electronic tenders, the question about the registration of the off-shore corporations which applied before 13 August remains to be considered.
The implication of the Federal Law No. 227-FZ 13.07.2015, “On Amending part of the Federal Law on Contract systems in the field of procurement of goods, works and services for governmental and municipal needs,” means that companies who want to participate in government procurement have to be legally domiciled in Russia or other locations, not referred to in Article 284 of the RF Tax code mentioned above.
Information on Russian and foreign government contractors as well as company credit reports can be requested off-line or obtained on-line from the Information and Analytical System Globas-i® developed by Credinform (Russia). http://www.credinform.ru/en-US/globas