PPN 01/22 Published: Contracts with suppliers from Russia and Belarus
PPN 01/22 was published on 28 March 2022 to provide guidance as to how contracting authorities can further cut ties with companies backed by the states of Russia and Belarus.
We are all aware of the invasion of Ukraine by Russia has been met with unique worldwide condemnation. This invasion has led the UK Government to introduce financial and investment sanctions, to deter and end Russia destabilising the Ukraine.
In-Scope Organisations should consider how they can cut ties with companies backed by the states of Russia and Belarus and apply the PPN to all contracts, (including all contracts above and below the thresholds set out in the Public Contracts Regulations 2015) where it is relevant and proportionate to do so.
The PPN requires In-Scope Organisations to:
- Review their contracts and identify any contracts where the prime contractor is a Russian or Belarusian supplier.
- If a contract is identified where a Russian or Belarusian is a prime contractor, they should consider terminating that contract in accordance with the terms of the contract.
- Only proceed to terminate a contract if an alternative supplier can be sourced in line with value for money, affordability and with minimal disruption to public services.
In reviewing, identifying, terminating contracts and conducting new procurements, In-Scope Organisations will need to ensure that they are equally compliant with the Public Contracts Regulations 2015.
All in scope organisations should apply the provisions of the PPN with immediate effect.
Hempsons’ specialist procurement team can advise you on the issues raised within the guidance or any other procurement issues.