Russia's EAO proposes law for light industry procurement

14 Jul '14

2 min read

The Jewish Autonomous Region (EAO) of Russian Federation has proposed to enact a law for preferential state procurement from the local light industry.

The proposal is part of the new measures suggested by the members of the EAO Legislative Assembly and the government to protect the light industry enterprises in the oblast (province), according to EAOmedia.

Elena Samojlenko, Deputy Chairman of the EAO regional parliament and one of the authors of the bill, said the local light industry, which includes textile and garment industry, is experiencing serious difficulties for the last few years, due to a sharp increase in insurance premiums, rise in raw cotton prices in world market, and Russia’s accession to the Customs Union with Belarus and Kazakhstan, and the WTO.

To stimulate the development of light and textile industries, the EAO government approved a program of industrial development aimed at enhance competitiveness of the sector, in April this year. To further support this industry, state orders might be placed with domestic companies on favourable terms, explains Ms. Samojlenko.

The new legislative initiative involves changes in the law related to the contract system in the procurement of goods, works and services for state and municipal needs, she adds.

According to the bill, 15 percent of the total volume of all government textile and light industry purchases would be reserved for domestic companies. Information about such benefits needs to be stipulated in all government procurement documentation.

The bill would now be discussed in an appropriate committee this week at a meeting of the EAO regional parliament.

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