EU to Request WTO Panel in Dispute Over Russian SOE Procurement Practices

The European Union will request a World Trade Organization panel in its ongoing dispute settlement case against Russia's state-owned enterprise procurement practices, the European Commission announced Nov. 17. The EU is challenging Russia's favoring domestic goods and services by state-related entities "to the detriment of EU companies." The EU's panel request will be considered at the next WTO Dispute Settlement Body meeting on Nov. 29.

The EU said the value of published tenders by Russian SOEs totaled over $324 billion, equivalent to 21% of Russia’s GDP. The EU is challenging three elements of Russia's procurement practices, arguing that they run contrary to WTO law. They are Russia's "discriminatory assessments of procurement bids," requirements for prior authorizations when SOEs want to procure certain engineering products abroad, and "national quota requirements in procurement."