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Foreigners will be forbidden to participate in the procurement of advertising services


These measures are designed to support those who are participants in the Russian advertising market. The relevant bill was submitted to the Duma.

It proposes to prohibit foreign entities, foreign citizens and Russian legal entities with a share of foreign participation of more than 20%, to participate in the procurement of services in the field of production and distribution of advertising. It relates to the procurement conducted for state and municipal needs, as well as the procurement undertaken by certain types of legal entities.

With this, those performing the services for the production and dissemination of advertising will not be entitled to hire persons (subcontractors) who are prohibited to act as participants in the procurement of advertising services. Also, it is proposed to include in the list of the information in the documentation on procurement the requirement to disclose information about the final beneficiaries hired by them as subcontractors.

The need for the adoption the proposed changes  are related to the fact that currently state-owned and state-owned companies primarily use Western contractors (advertising media agencies) to implement the strategy of writing advertising in the media and for the procurement of advertising, and to create promotional materials. Thus, the players in the Russian advertising market are discriminated against and do not have the opportunity to participate in the procurement process due to an inconsistency in the high requirements of the large advertisers.

The adoption of the bill will facilitate separation of the market in order to reduce pressure on the media, along with the more active development of the advertising market in Russia increasing the possibility of Russian players to enter western ranking and promote Russian goods.

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