Procurement Risk:
High
Score:
36/100
Government Policy
Q57
50/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This indicator is not assigned a score in the GDI. Federal Law No. 44 ‘On the Contract System for the Procurement of Goods, Work…
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Federal Law No. 44 ‘On the Contract System for the Procurement of Goods, Work and Services to Meet State and Municipal Needs’ states that…
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On the one hand, the legislation seems to be implemented, regardless of its flaws. For example, since the new anti-corruption amendments to Federal Law…
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Q58
50/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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Federal Law No. 44 ‘On the Contract System for the Procurement of Goods, Work and Services to Meet State and Municipal Needs’ stipulates the…
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According to Article 4 of Federal Law No. 44 ‘On the Contract System for the Procurement of Goods, Work and Services to Meet State…
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Federal Law No. 44 ‘On the Contract System for the Procurement of Goods, Work and Services to Meet State and Municipal Needs’ stipulates the…
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Q59
58/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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According to Government Decree No. 728, the Federal Antimonopoly Service (FAS) is appointed to implement state control over defence procurement [1]. Section 5.1 ‘On…
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According to the work reports, the federal services for control are quite active in carrying out their oversight functions (although, most often the reports…
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The federal services’ work reports on procurement oversight are published on the official webpages but are limited to general, aggregated information [1,2,3]. In addition,…
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According to Article 4 of Federal Law No. 44 ‘On the Contract System for the Procurement of Goods, Work and Services to Meet State…
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Federal Law No. 275 stipulates that state defence orders are planned in accordance with the Russian Military Doctrine, the State Armament Programme, the economy…
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According to Article 5, Clause 2 of Federal Law No. 5485-1 ‘On State Secrets’, information about the volume and plans of defence orders is…
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MoD does not provide any data about MoD tenders/contracts for non-secret items (secret items are classified under the law on state secrets) [1]. Some…
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Capability Gap and Requirements Definition
Q62
0/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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No Russian law, including Federal Laws No. 44 and No. 275, stipulates any selection criteria for suppliers [1,2]. Federal Law No. 44 requires ordering…
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This indicator is not applicable because the federal laws on state procurement and defence orders do not impose any legal anti-corruption requirements on the…
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Q63
33/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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According to Article 4 of Federal Law No. 275 ‘On State Defence Orders’, the defence order plan is defined in accordance with the Military…
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The problem of public funds being misused, especially in the defence sector, is notorious. To solve it, the government set out a few oversight…
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According to Article 4 of Federal Law No. 275 ‘On State Defence Orders’, the defence order plan is defined in accordance with the Military…
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Tender Solicitation, Assessment and Contract Award
Q64
0/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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Q65
56/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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Article 31, Clause 1.9 of Federal Law No. 44 clearly defines and prohibits conflicts of interest among all participants of state order contracts [1].…
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Internally, Minister of Defence Decree No. 695 describes the internal control of procurement [1]. Article 18 allows the oversight commission to check the reasonability…
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There is a publicly available Code of Conduct for MoD civilian personnel and ethical regulations for military personnel [1]. Both apply to the MoD…
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According to Article 98 of Federal Law No. 44, non-secret tenders are externally audited by the Accounts Chamber and auditing bodies at regional and…
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Q66
69/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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Collusion between bidders (regardless of the sphere of activity) is prohibited under Article 14.32 of the Administrative Code ‘On collusion that limits competition’ [1],…
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Article 14.32 of the Administrative Code stipulates fines for economic entities that have initiated or participated in collusion [1]. Article 178 of the Criminal…
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The Federal Antimonopoly Service is independent from military stakeholders in decision-making and quite active in investigating cases of collusion between bidders in defence procurement…
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There is no evidence indicating that the MoD requires or provides its employees with training to identify collusion in procurement [1].
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Contract Delivery and In-Service Support
Q67
38/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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Article 101 of Federal Law No. 44 states that the ordering party shall carry out an inspection upon the supplier’s delivery of service obligations…
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In November 2018, the MoD merged two departments – the Department for Pre-Action and Legal Work and the Legal Department – into one that…
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According to Minister of Defence Decree No. 2350, the structural department, authorised by the Minister of Defence, shall check the fullness, accuracy and fairness…
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According to Minister of Defence Decree No. 2350, if a supplier fails to fulfil their service obligations, the structural department shall forward a report…
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Q68
83/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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According to Article 105 of Federal Law No. 44, any party involved in a state procurement order can complain about malpractice [1]. Clause 2…
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To lodge a complaint, a company needs to submit a detailed written letter on the matter of the complaint and attach relevant supporting documents…
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The complaint mechanism seems to be widely used across the country [1] and sectors [2,3,4]. There is no information indicating that any company has…
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The Criminal Code, Articles 204 ‘On corrupt payment’, 290 ‘On receiving a bribe’, Article 291 ‘On giving a bribe’, Article 291_1 ‘On mediation in…
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The Federal Antimonopoly Service can initiate investigations, issue orders or launch administrative or criminal cases [1,2]. The MoD tender board members can exclude from…
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Random journalist reports prove that the cases are investigated and prosecuted [1]. The punishment for the offences may include imprisonment and heavy fines [2].
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Offset Contracts
Q70
0/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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In 2016, Federal Law No. 365 introduced an amendment to Federal Law No. 44 that outlines rules for special investment contracts (SIC, Article 111.3)…
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Russian law does not impose any due diligence requirements on parties of off-pay contracts regulated by Federal Law No. 365 of 2016 [1]. As…
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There are no formal policies specifically for offset contracts that outline how to report or monitor the delivery of services. The 2016 amendment does…
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Since the relevant amendment was made in 2016, there has only been one special investment contract (SIC) – in November 2017 [1]. The Moscow…
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Since late 2017, procurement officials of the Moscow government, which was the ordering party for the first special investment contract (SIC) in Russia, has…
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Judging by the first and only special investment contract (SIC) in Russia, the procurement officials do not act upon breaches of contract. In August…
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The ordering party may be the Russian Federation (with a regional or municipal authority) for special investment contracts (SIC) and a regional authority for…
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Agents / Brokers
Q73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
View QuestionFinancing Package
Q74
0/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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Non-secret defence contracts are publicly available on the official state procurement portal [1]. However, the number of secret parts of MoD sales is quite…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI. Russia is an exporter, not an importer of arms. The SIPRI report on arms…
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This indicator is not assigned a score in the GDI. In the last five years, Russia has not made any purchases from other nations…
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This indicator is not assigned a score in the GDI. In the last five years, Russia has not made any purchases from other nations…
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