Restrictions on procurement of foreign software in the presence of analog in the Russian Federation

MOSCOW, January 4. The government decree on the introduction of restrictions on purchases of Russian government agencies foreign software (SW) in the presence of domestic analogue entered into force on 1 January. Now the government agencies will have to purchase the software from a special Russian registry.

For the examination on the inclusion of information in the registry at the Ministry of communications, a special expert Council, which at least half will consist of members, which will offer the Association of Russian software developers. According to the Minister of communications and mass communications of the RF Nikolay Nikiforov, the Council’s first meeting will be held immediately after the Christmas holidays. It is expected that on its results to the registry will include about 100-150 software products. Maintaining the register of Russian will be a special service provider registered in the territory of the Russian Federation.

The Minister explained that Russian companies whose bids in public procurement will be rejected in favor of foreign, can submit complaints to the Federal Antimonopoly service (FAS) of the Russian Federation. The Agency in turn will attract the Ministry of communications as a consultant on such controversial issues.

According to the head of the Ministry of communications, government agencies spend a year on IT products and services is about 80 billion rubles. Thus, according to Nikiforov, with the entry into force of the rules on the purchase of domestic software developers “expect increased revenue, more jobs, more jobs, more wages”.

In six months the Ministry of communications will decide on the admission to public procurement, the country-members of the Eurasian economic Union (EEU) on equal terms with domestic developers. After coordination with the Ministry of economic development and the Russian foreign Ministry, the relevant proposals will be sent for approval to the government.

In the summer of 2015, President Vladimir Putin signed the Federal law which defined the order and conditions of recognition originating from the Russian Federation. In addition to that provided for the establishment of the Russian registry and identified the basic criteria for inclusion software products in the registry. In particular, the exclusive right to the software in the entire world and for the duration of the action should belong to Russian owners. In addition, such software should be freely accessed and distributed on the territory of the Russian Federation and the amount of the license and other payments for the year in favour of foreign copyright holders shall not be more than 30% of sales revenue.

The Ministry has also prepared a draft government decree, which obliges state-owned companies to give preference in the procurement of domestic software developers (SOFTWARE) and IT equipment against the contract price in the amount of 15%.