Article 6 Procurement

6.1 Procurement award procedures by beneficiaries established in the Russian Federation, which are private entities, shall be subject to Annex II of this Agreement (Award of procurement contracts by Russian private beneficiaries).

6.2. Where the beneficiary is a Public Entity established in the Russian Federation in accordance with Article 1 or a legal entity established in the Russian Federation which is subject to national procurement legislation, it shall apply the legislation of the Russian Federation. The contract shall be awarded to the tender offering best value for money or as appropriate to the tenderer offering the lowest price. The beneficiary shall avoid any conflict of interests and respect the principles of equal treatment, non-discrimination, fair competition, transparency. The Russian Federation ensures that services, works and goods that are not originating from the Russian Federation receive the same treatment as compared to its own services, works and goods in accordance with Article 7 of this Annex. Failure to comply with the above shall render the related expenditure ineligible.

6.3 The same rules laid down in paragraphs 1 and 2 of this Article shall apply if the implementation of the annual plan for the use of the technical assistance budget requires procurement by an entity established in the Russian Federation. Procurement by branch offices shall be limited to ordinary running costs and costs for communication and visibility activities.

6.4 Where the beneficiary is a contracting authority or a contracting entity established in an EU Member State, it may apply national procurement laws, regulations and administrative provisions adopted in connection with Union legislation. The same rules apply if the implementation of the annual plan for the use of technical assistance budget requires procurement by a contracting authority or a contracting entity established in a Member State.