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13 September 2021, 07:04

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Photo by M. Denisov.

This is a significant support measure for the city’s more than 230,000 suppliers.

The Moscow government has decided to reduce the payment terms for government contracts. Some changes in the second optimization package of amendments to the law on the contract system of Federal Law No. 44-FZ are being implemented in the capital earlier than in other regions. This is made possible by a digital procurement management platform. This was announced by the Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov

The second optimization package of amendments to the law on the contract system of Federal Law No. 44-FZ was approved by the Government of the Russian Federation on July 1, 2021. The amendments provide for a phased reduction in the norms for payment terms for Russian customers – from January 1, 2022 and from January 1, 2023.

Moscow’s procurement system is ready for the early implementation of legislative changes. A single digital ecosystem of services for public procurement participants has been formed in the capital. It automates procurement processes, eliminates errors and the human factor. All documents are registered instantly and are available online.

“According to the Decree of the Moscow Government, the reduction of the terms of payment for state purchases will take place in stages. From October 1, 2021 – payment will take no more than 10 working days from the date the customer signs the acceptance document for procurement contracts from small businesses, socially oriented non-profit organizations. For other contracts – no more than 15 working days. From January 1, 2022 – no more than seven and 10 working days, respectively. Previously, payment terms were 15 working days for small businesses and 30 days for other contracts. Thus, payment terms are cut in half, ”said Vladimir Efimov.

He also noted that changes in contract templates in the Unified Automated Trading Information System (EAIST) of the city of Moscow will become available from September 20 and December 20, 2021, respectively.

Reducing the terms of payment for government purchases is a significant support measure for more than 230 thousand suppliers of the city. They will be able to receive funds in a short time for the goods supplied and the work performed. In addition, the replenishment of the budget from regional taxes will occur faster, which will lead to an acceleration of the turnover of funds from the city’s economy.

“Together with the electronic execution of contracts, the reduction in payment terms forms an absolutely transparent and most efficient digital system of city purchases,” added the head of the capital

Competition Policy Department Ivan Shcherbakov

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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