Kozlovtsev M.S. National Treatment in Procurement for the State Defense Order by Defense Industry Enterprises
DOI: https://doi.org/10.15688/lc.jvolsu.2025.3.8
Mikhail S. Kozlovtsev, Postgraduate Student, Department of Theory of Law and Public Law Disciplines, Volgograd Institute of Management, Branch of Russian Academy of National Ecoconomy and Public Administration (under the President of the Russian Federation), im. Gertsena St, 10, 400078, Volgograd, Russian Federation, This email address is being protected from spambots. You need JavaScript enabled to view it. , https://orcid.org/0009-0004-7585-450X
Introduction: the paper analyzes the reform of the national treatment in procurement for the state defense order (hereinafter, referred to as the SDO), introduced by Decree of the Government of the Russian Federation No. 1875 of December 23, 2024. The relevance of the study is due to the identified systemic problems of the new regulation that hinder the effective execution of the defense order and create legal conflicts. The purpose of the study is to assess the legal and practical consequences of the introduction of this Government Decree for defense industry (DI) enterprises and control bodies. The research methodology is based on legal interpretation and the historical and legal method; the analysis of the norms of the decree and its comparison with the legislation on procurement (Federal Laws No. 44-FZ and No. 223-FZ) and the law on the state defense order is carried out. The law enforcement practice, explanations of the Ministry of Finance of the Russian Federation, scientific doctrines and practice of business entities are studied. Results: the scientific analysis shows that the formal definition of regulated entities has created an opportunity to establish holding structures that circumvent the provisions of Decree No. 1875, thereby avoiding government control. The exceptions for procurement not related to the state defense order are de facto not valid for organizations from the defense industry registry. The permissive procedure for the procurement of foreign goods in the absence of analogues is inapplicable in the context of the urgency of fulfilling the defense order. The requirement to apply for each position increases the time and leads to fragmentation of demand. The technical requirements for the “Russian” status (and the letter “O1”) block procurement at the R&D/testing stage. Decree No. 1875, combining disparate acts, has expanded the scope of the national treatment in procurement under 223-FZ without proper synchronization with the legislation on the state defense order and the policy of import substitution. The lack of responsibility for violations under 223-FZ reduces the effectiveness of control. The result has been an increase in administrative barriers, an increase in the cost of products, the risk of deadlines for fulfilling a defense order, legal uncertainty and a blurring of supervisory powers between the FAS of Russia, the Ministry of Industry and Trade of Russia and the Prosecutor General’s Office of the Russian Federation. Conclusions: for science, the work is significant as the first comprehensive study of the conflicts of the new national treatment in the field of state defense order at the intersection of procurement law and specialized regulation of the defense industry. For practice, the critical risks in the execution of the state defense order are identified and measures are proposed to adjust Decree No. 1875: a clear separation of the application of the national treatment in defense procurement and outside it for the defense industry registry organizations. The introduction of accelerated import approval procedures by law enforcement agencies (the Russian Ministry of Defense, the Military-Industrial Commission Board, the FSB of Russia) for the urgent needs of the State Security Committee. It is necessary for the Ministry of Finance of Russia and the Federal Antimonopoly Service of Russia to develop a unified procurement methodology for the purposes of SDO with an explanation of the controversial provisions of Decree No. 1875.
Key words: State Defense Order, national treatment in procurement, execution of the state defense order, defense industry enterprises, administrative barriers, administrative regulation of procurement.
Сitation. Kozlovtsev M.S. National Treatment in Procurement for the State Defense Order by Defense Industry Enterprises. Legal Concept = Pravovaya paradigma, 2025, vol. 24, no. 3, pp. 70-75. (in Russian). DOI: https://doi.org/10.15688/lc.jvolsu.2025.3.8