DISPUTE SETTLEMENT

DS: Russian Federation — Certain Measures Concerning Domestic and Foreign Products and Services

This summary has been prepared by the Secretariat under its own responsibility. The summary is for general information only and is not intended to affect the rights and obligations of Members.

  

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Summary of the dispute to date

The summary below was up-to-date at

Consultations

Complaint by the European Union

On 22 July 2021, the European Union requested consultations with the Russian Federation with regard to various measures favouring domestic products and services provided by domestic entities over foreign products and services provided by foreign entities, including the following: price preference applied to procurements by State-related entities favouring Russian origin products and services from Russian entities; a requirement to obtain prior authorisation for the purchase of certain engineering products; and minimum quotas for domestic products in procurement procedures of certain State related entities favouring Russian origin products.

The European Union claimed that the price preference applied to procurements by State-related entities favouring Russian origin products and services from Russian entities appears to be inconsistent with:

  • Articles III:4 and XVII:1(c) of the GATT 1994;
     
  • Article XVII:1 of the GATS; and
     
  • Paragraph 2 of the Russian Federation's Protocol of Accession in conjunction with paragraphs 98, 99 and 1450 of the Working Party Report on the Russian Federation's accession to the WTO.

The European Union claimed that the requirement to obtain prior authorisation for the purchase of certain engineering products appears to be inconsistent with:

  • Articles III:4, XI, and XVII:1(c) of the GATT 1994; and
     
  • Paragraph 2 of the Russian Federation's Protocol of Accession in conjunction with paragraphs 98, 99 and 1450 of the Working Party Report on the Russian Federation's accession to the WTO.

The European Union claimed that the minimum quotas for domestic products in procurement procedures of certain State related entities favouring Russian origin products appears to be inconsistent with:

  • Articles III:4 and XVII:1(c) of the GATT 1994; and
     
  • Paragraph 2 of the Russian Federation's Protocol of Accession in conjunction with paragraphs 98, 99 and 1450 of the Working Party Report on the Russian Federation's accession to the WTO.

 

Panel and Appellate Body proceedings

On 17 November 2021, the European Union requested the establishment of a panel. At its meeting on 29 November 2021, the DSB deferred the establishment of the panel.

At its meeting on 20 December 2021, the DSB established a panel. Australia, Brazil, Canada, China, Colombia, India, Japan, Korea, Moldova, Switzerland, Ukraine, the United Kingdom, and the United States reserved their third-party rights.

Following agreement of the parties, the panel was composed on 22 February 2022.

On 11 March 2022, the Chair of the panel informed the DSB that it had granted the European Union's request of 8 March 2022 that the panel suspend its work pursuant to Article 12.12 of the DSU for an indeterminate period of time. The Chair indicated that the suspension of the proceedings was effective from 8 March 2022. The Chair noted that pursuant to Article 12.12 if the work of the panel had been suspended for more than 12 months, the authority for establishment of the panel shall lapse.

 

 

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