News & Press

21 June 2010 Russian antitrust authority rules on tenders for possession or use of state or municipal property.

Legal Update No. 153.

Goltsblat BLP advises that the Federal Anti-monopoly Service of Russia issued Order No. 67 of 10 February 2010 “On the procedure for holding tenders and auctions for the right to enter into leases, gratuitous use and property trust management agreements and other agreements providing for transfer of rights of possession and (or) use of state or municipal property and the list of property for which such agreements may be awarded by way of a bidding procedure (tender)”.

The order contains an exhaustive list of property with regard to which agreements providing for possession and (or) use rights transfer might be concluded by holding a tender, in particular: pipeline transportation facilities, hydraulic structures, electric and thermal power production, transmission and distribution facilities, and public utility facilities.

The order also sets out requirements on tender (auction) participants, tender commissions, and tender admission procedure:

• a bidder shall not be admitted to a tender (auction) by the tender commission if a decision has been made to suspend its operations in the manner envisaged by the Russian Code of Administrative Offences as of the date of considering the relevant bid.
• all stages of tender procedure (tender preparation and holding) are considered:
  • tender (auction) announcement,
  • tender and auction documentation development,
  • bid filing and examination,
  • the actual tender,
  • conclusion of the awarded agreement.
• one lot cannot comprise technologically and functionally unrelated state (municipal) property.
• tender documentation should indicate that contractual terms and conditions set out in the bid filed by a tender participant and in tender documentation are not subject to modifications upon signing and performance of the relevant agreement either by agreement between the Parties or unilaterally.
• auction documentation should contain a similar provision with regard to contractual terms and conditions set out therein.
• the bidders cannot be required to submit the originals of any documents.
• the tender commission and auction organiser must ensure audio and video recording of the opening of envelopes with bids and the auction process respectively.
• any bidder attending the opening of envelopes and any auction participant may make video/audio records of the process.
• a contract awarded through a tender shall be concluded for at least 5 years.

The bidding rules do not cover property controlled by virtue of the Russian Land Code, the Russian Water Code, the Russian Forestry Code and the Russian legislation on the subsoil and concession agreements.

For additional information, please contact:

Vitaly Mozharowski, Partner,
Real Estate and Construction
Goltsblat BLP;
Tel: +7 (495) 287 44 44,
Email: info@gblplaw.com

Elena Barinova,
Partner, Real Estate Investment and Finance
Goltsblat BLP;
Tel: +7 (495) 287 44 44,
Email: info@gblplaw.com

back to list >