New Public Procurement Restrictions

On 15 September 2016, the President of Azerbaijan signed a new Decree "On Additional Measures on Increasing the Efficiency of Executive Authorities and Organizations Funded from the State Budget" (the "New Decree"), which set forth new regulations for public procurement.

In particular, executive authorities of the Republic of Azerbaijan and organizations funded from the State Budget shall phase out the procurement of imported goods (works and services) by 1 January 2018.

There are, however, certain exceptions to this requirement, as set out below:

1. The restrictions set forth above do not apply to the procurement of imported goods (works and services) using funds borrowed from foreign lenders and guaranteed by the State, foreign grants and procurement for the defense and national security purposes, as well as to the procurement of drugs and medical supplies;