EU to Challenge Russian Procurement Policies at WTO
The European Union is challenging Russia's government procurement policies, the bloc said in a July 19 news release. The EU is requesting consultations with Russia via the World Trade Organization dispute resolution process over three policies that restrict or prevent…
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EU companies from selling to Russian state-owned enterprises. It cited Russia's discriminatory assessments of procurement bids, requirements for prior authorizations and national quota requirements in procurement. When the Russian entities assess goods for procurement, certain SOEs will deduct 15% to 30% from the offered price for domestic goods but still charge full price if the Russian bid is selected, putting foreign interests at a disadvantage. Such restrictions have been building since 2015, the release said. The economic impact of this has been “significant," with the value of published tenders by Russian SOEs in 2019 totaling over 290 billion euros and equivalent to 21% of Russia's GDP.