In Russia, coronavirus is recognized as force majeure during public procurement
The Ministry of Industry and Trade together with the Ministry of Justice and the Ministry of Finance are developing an act according to which restrictions due to the new coronavirus will be recognized as force majeure circumstances during public procurement. This was reported in the Ministry of Industry and Trade, Kommersant reports.
"Today it is necessary to level the problems due to the coronavirus associated with the fulfillment of obligations under state contracts concluded by automakers," the department said.
At the end of February at a meeting in the Russian Union of Industrialists and Entrepreneurs, the head of KamAZ, Sergey Kogogin, said that automakers who work under the federal law on public procurement (FZ-44) are faced with "gigantic" fines if they fail to fulfill obligations under state contracts amid the consequences outbreaks of coronavirus. He proposed to consider the problems due to the epidemic as force majeure.
The chamber of industry and industry (CCI) already confirms force majeure because of the coronavirus for foreign trade contracts, the president of the CCI Sergey Katyrin told the publication. In this case, emergency circumstances are not understood as the Covid-19 epidemic itself, but the restrictions imposed on the territory of Russia to combat it, if in this connection companies cannot fulfill their obligations to foreign partners. The same measures, according to Katyrin, are being taken by China.In Russia it is known about 20 infected - these are two citizens of China, a citizen of Italy and 17 Russians. Both citizens of the PRC and one Russian have already been discharged from the hospital. In addition, Russian citizens recovered from the Diamond Princess cruise ship, which was quarantined off the coast of Japan, recovered.
The new coronavirus has had a negative impact on the economy and business. Airlines, in particular, suffer losses due to ticket refunds and flight restrictions, and the cost of oil is also reduced. The Russian authorities, in turn, decided to take into account the impact of COVID-19 on the economy. On March 2, Prime Minister Mikhail Mishustin, due to an outbreak of the disease, ordered the Russian budget to be developed for the next three years, taking into account the impact of the spread of the new coronavirus on the global economy.