Putin signs new state procurement law letting officials swap goods and change countries of origin to protect suppliers from sanctions

On August 4th, Russian President Vladimir Putin signed a new law altering state and municipal procurement rules in Russia. The amendments permit government customers to replace goods in contracts with equivalents, modify the country of origin, increase contract values without specifying quantities, and enter into multiple small contracts with the same supplier.

Starting in 2027, authorities will be able to purchase up to an additional 30% of medicines, medical devices, and consumables from existing suppliers without conducting a new tender. While the changes were presented as a means to streamline procurement for Russia's regions, they apply to all levels of state and municipal customers, including federal agencies.

Many of the amendments close gaps in Federal Law 44-FZ, Russia's primary public procurement law, which previously required supplemental agreements to bypass. From October 1st, 2026, goods may be substituted during contract execution, suppliers can offer equivalent products if unable to deliver due to sanctions or logistical issues, and the country of origin can be altered under the national regime.

For medicines, medical devices, and consumables, the volume may be increased by 30%, with the price allowed to change only once. The threshold for maximum contract price for small business purchases has been raised from 20 to 30 million rubles, aligning with current economic realities. Closed procurements by medical commission decisions can now specify trade names, and the timeframe for approving single-supplier contracts has been shortened from eight to five working days.