Territory
DPR, LPR, Zaporizhzhia and Kherson Oblasts (occupied)
Date
31 December 2022 · published 20 January 2023
Theme
Governance · Economics · Accountability and Legal
Analytical Dimension
Reconstruction contracts · Single-supplier procurement · Non-publication of contract data
Format
Primary Source
Source
Government of the Russian Federation · Resolution No. 2559
Official source
publication.pravo.gov.ru, eoNumber 0001202301200026 · base.garant.ru/406197979
Translation Status
Full Russian text embedded · key provisions summarised (AI-assisted)

Original Russian-language government resolution, six pages, adopted under the Federal Constitutional Law "On Martial Law" and the federal procurement law No. 44-FZ. It governs how state and municipal purchasing is conducted in the four occupied regions while martial law, declared by presidential decree on 19 October 2022, remains in force.

Resolution No. 2559 is the legal basis for the closed reconstruction economy of the occupied territories. Paragraph 1 allows any customer to buy goods, works and services from a single supplier for activity on territories under martial law, without competitive procedure, and disapplies the usual requirements for contract security and formal contract terms. Paragraph 2 releases customers in the four regions from several core provisions of the procurement law for 2023. The annexed amendments provide that information about such purchases is entered in procurement schedules but is not published on the official procurement site, and that where communications fail the customer may record the purchase later. The resolution therefore explains why reconstruction contracts in Mariupol and elsewhere, worth hundreds of billions of roubles, have been awarded without tender and without public records. It is cited in TOT Insights research on reconstruction contracts as an integration channel and on the patron-region (shefstvo) system.

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Partial AI-assisted translation and summary. Key provisions only. For the authoritative text, refer to the original Russian-language document embedded above.

Paragraph 1: single-supplier procurement

For the defence and security of the Russian Federation during martial law, customers may procure goods, works and services from a single supplier (contractor, performer) for activity on territories where martial law has been introduced. Such contracts are governed by the rules for single-supplier purchases under article 93(1)(9) of the procurement law; customers may waive contract security and warranty security; and the contract may be concluded in any form permitted by the Civil Code, without applying the formal requirements of article 34.

Paragraph 2: exemptions for 2023

Customers procuring for the state needs of the DPR, LPR, Zaporizhzhia and Kherson Oblasts and their municipalities in 2023 may disregard articles 19, 20, 30, parts 2 to 4 of article 31, part 6 of article 38 and part 5 of article 39 of the procurement law, and may conduct all such purchases under paragraph 1.

Annexed amendments

Resolution No. 1279 of 2019 on procurement schedules is supplemented so that such purchases are entered in electronic schedules but the information "is not placed on the official site", and schedule changes may be made up to the day the contract is concluded.

Analytical note

The resolution removes competition, publicity and standard contract safeguards from the entire public purchasing of the occupied regions. Together with the martial-law decree it creates the conditions in which reconstruction money flows to contractors chosen by the occupation authorities and their patron regions, with no public record of who was paid for what.