Special Economic Measures: What to Expect?

The Government of the Russian Federation may introduce special economic measures to ensure that counter-terrorism and other operations are carried out outside the territory of the Russian Federation¹:

These are the following special measures:

• Legal entities, regardless of their organizational legal form and form of ownership, will not be able to refuse to conclude contracts and state contracts for the supply of goods, performance of works, provision of services aimed at ensuring that the Armed Forces of Russia, other troops, military formations and bodies conduct counter-terrorism and other operations outside the territory of Russia;
• As part of the procurement process under Federal Law No. 223², customers will have the right to purchase goods, works, services necessary to fulfill state defense orderы, as well as to form stocks of products, raw materials, materials, semi-finished products and components from a single supplier (contractor);
• As part of the procurement process under Federal Law No. 44³, the parties will have the right to change the essential terms of the contract for the supply of goods, performance of work, provision of services under state defense orders by increasing or decreasing their quantity (volume) with a corresponding increase or decrease in the price of such a contract.

In order to implement these special measures, changes in the regulation of labor relations are introduced. In separate organizations, their structural divisions and at separate production facilities, also by decision of the Government of the Russian Federation, the following regulations can be established⁴:

• The procedure and conditions for employment outside the established working hours;
• The procedure and conditions for engaging in work at night, at the weekends and during non-working holidays;
• The procedure and conditions for granting annual paid vacations.

In the explanatory note⁵ the references only to the military-industrial complex organizations were made. It was also noted, that the rules under consideration are introduced to create resource provision for supplies under state defense orders.

However, the adopted statements are rather vague and do not provide clarity whether only military-industrial complex organizations will be involved in the events conducting by the executive authorities when introducing special measures. Most likely the details of events and involved entities will be specified in every decision of the Government of the Russian Federation.

¹ Federal Law No. 272 dated 14.07.2022 "On Amendments to Certain Legislative Acts of the Russian Federation" // URL: http://publication.pravo.gov.ru/Document/View/0001202207140026?index=0&rangeSize=1
² Federal Law No. 223 dated 18.07.2011 "On Procurement of Goods, Works, services by Certain Forms of Legal Entities”
³ Federal Law No. 44 dated 05.04.2013 "On the Contract System in the Field of procurement of goods, Works, services for State and Municipal Needs"
⁴ Federal Law No. 273 dated 14.07.2022 "On amendments to the Labor Code of the Russian Federation" // URL: http://publication.pravo.gov.ru/Document/View/0001202207140052
⁵ Explanatory Note to the Draft Federal Law "On Amendments to Certain Legislative Acts of the Russian Federation on the Provision of the Armed Forces of the Russian Federation, Other Troops, Military Formations and Bodies during Counter-Terrorism and Other Operations Outside the Territory of the Russian Federation "// URL: https://sozd.duma.gov.ru/bill/155680-8?ysclid=l5v1fmno5s291661707#bh_note