By the close of 2023, government buyers in Russia stepped up their procurement from small and medium-sized enterprises under Federal Law 44. The Kontur.Torgi project team shared these findings with socialbites.ca, underscoring a trend that has persisted for several years. The year’s performance reflects a concerted push by public buyers to diversify suppliers and inject SMEs into a broader spectrum of state purchases, a shift that aligns with policy goals aimed at strengthening domestic commerce while maintaining competitive bidding practices.
Across 2022, the total value of tenders opened by the state for small businesses stood at 1.69 trillion rubles. In 2023, that figure rose to 1.81 trillion rubles, marking an annual growth of about 7 percent. This uptick signals more frequent opportunities and greater access for smaller firms to win government contracts, a dynamic confirmed by independent assessments from procurement analysts. According to Kontur.Torgov expert Vasily Danilchik, the 2023 total for SME-related trade reached 1.81 trillion rubles, up 7% from the previous year and reflective of sustained investment in SME capabilities and administrative modernization across public procurement channels.
The growth pattern extended beyond overall expenditure to include a rise in the number of tenders issued. The number of procurement procedures under 44-FZ involving SMEs increased from roughly 1.29 million in 2022 to about 1.38 million in 2023. This expansion indicates not only larger budgets but also a broader opening of the bidding landscape, with more firms able to participate in government commerce and more frequent opportunities to engage with state customers.
Additionally, public purchasers began to place a stronger emphasis on diversifying sources of supply by expanding procurement from small businesses and state-owned companies operating under 223-FZ. Throughout the year, spending on such tenders grew by roughly 2.7 percent, reaching 2.22 trillion rubles. The share of procedures specifically disclosed to participants from the SME sector rose from 29 percent to 32 percent, illustrating an ongoing effort to improve transparency and inclusivity in the tender process. This shift is part of a broader modernization agenda designed to simplify access for smaller firms and reduce barriers to entry while preserving competitive integrity.
Experts attribute the rise in SME-focused procurement to a sustained government policy aimed at supporting and expanding this sector. With the number of registered SMEs increasing to about 6.34 million in 2023, public customers have redirected more funds toward suppliers in this category. The result is a more dynamic market for government contracts, where SMEs can demonstrate their capacity to deliver goods and services at scale, while public buyers benefit from a more diverse supplier base and fresh innovative solutions.
Looking ahead, observers expect continued emphasis on SME participation in public procurement. The modernization of procurement platforms, enhancements in bid transparency, and ongoing policy measures designed to nurture SMEs all point to a favorable environment for small businesses seeking government contracts. As the SME ecosystem grows, suppliers can anticipate more predictable tender cycles and clearer pathways to compete for public sector work, strengthening the alignment between policy objectives and market outcomes.
Note: figures and analysis herein reflect publicly available procurement data and expert interpretation from Kontur.Torgi. These insights illustrate trends within Russia’s government procurement framework under 44-FZ and 223-FZ, including shifts in tender counts, expenditures, and SME participation. Attribution to the involved analysts and platforms is provided for context and is not an endorsement of any single conclusion. The information is intended to offer a high-level view of the SME procurement landscape and its implications for policy, business strategy, and market opportunities.