Russia classifies military and special services procurement
Going forward, the Russian Ministry of Defense and Special Services will conduct purchases through classified means, the newspaper Kommersant, citing clarifying comments by the Russian Ministry of Finance, Federal Treasury and Federal Antimonopoly Service.
According to these clarifications, the Federal Security Service (FSB), Foreign Intelligence Service (FIS), and Ministry of Defense, as well as all organizations subordinate to these structures, may only conduct procurement that is intended to ensure the needs of the defense and state security through classified means going forwards. The methods of these purchases will be determined by the law "On the Contract System."
It also follows from the explanations that the Ministry of Defense, FSB and the FIS will be prohibited from posting information about purchases in the Unified State Automated Information System (EGAIS). The new regulations specifically cover bidding documentation, minutes of the bidding commission, procurement plans and procurement schedules. Additionally, the law prohibits posting information about bank guarantees and concluded contracts to the EGAIS. The country’s Ministry of Defense and Special Services may conduct purchases only in the form of a closed auction on the electronic trading platform for state defense orders.
The Russian Government has prepared a preliminary list of 126 companies whose competitive purchases since December 15 must be transferred from open sites to the closed procurement system for defense orders (on the Sberbank platform). The list also includes banks and sub-structures of banking groups.
In November 2017, it was reported that the Russian Ministry of Defense had nearly doubled the purchase of inflatable models of missiles and aircraft.