BRUSSELS, July 19. /TASS/. The European Union made a decision to initiate a dispute with Russian within the framework of WTO regarding "discriminatory procurement by Russian state-owned enterprises," the press service of the European Commission said on Monday.
"The EU is requesting consultations with Russia in the World Trade Organization (WTO) regarding certain Russian measures that restrict or prevent EU companies from selling goods and services to Russian State-owned enterprises and other entities through procurement for commercial purposes. These practices seem to be contrary to WTO rules which require that Russia may not discriminate against foreign companies in this area," the European Commission said.
"Since 2015, Russia has gradually expanded its import substitution policy through the use of various restrictions and incentives. These aim to replace the use of foreign goods and services in procurement contracts by certain State-related entities and by legal entities in investment projects financed by the State. The economic impact for EU companies is very significant. In 2019, the value of published tenders by State-owned enterprises amounted to RUB 23.5 trillion, which is around EUR 290 billion and equivalent to 21% of Russia's GDP," the European Commission noted.
The EU challenges, in particular, three Russian measures, the discriminatory assessment of procurement bids, requests for prior authorizations, and national quota requirements in procurement, the document says.
"The dispute settlement consultations that the EU has requested are the first step in WTO dispute settlement proceedings. If they do not lead to a satisfactory solution, the EU can request that the WTO set up a panel to rule on the matter," the European Commission concluded.