Welsh Procurement Policy Note WPPN 007: contracts with suppliers from Russia and Belarus

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• A resilient Wales
• A globally responsible Wales

• This Welsh Procurement Policy Note (WPPN) is effective from the date of commencement of the Procurement Act 2023 and the Procurement (Wales) Regulations 2024. For procurements started prior to this date (24 February 2025), please refer to WPPN 01/22.
• It has been updated to reflect changes introduced by the Procurement Act 2023 and the Procurement Regulations 2024, such as new terminology. It does not constitute a change in policy.
• Any policy should be read in conjunction with the Wales Procurement Policy Statement, the Procurement Act 2023, the Procurement (Wales) Regulations 2024 and the Social Partnership & Public Procurement (Wales) Act 2023.
• It should not be treated as legal advice and is not intended to be exhaustive – contracting parties should seek their own independent advice as appropriate. Please also note that the law is subject to constant change and advice should be sought in individual cases.
• The note assumes a certain level of knowledge of public procurement. It is available via the Welsh Government website GOV.WALES and any queries should be directed to CommercialPolicy@gov.wales or via the Welsh Governments’ customer services.
• References to the ‘Procurement Act 2023 and the Procurement (Wales) Regulations 2024’ will be expressed herein as “the Procurement Regime”.

1.1 WPPN 007 adopts the recently published UK government Procurement Policy Note 007: Contracts with Russia and Belarus and the associated frequently asked questions drafted by the Cabinet Office.

1.2 Welsh Government has decided to adopt the policy stated in UKG PPN 007. The purpose of this WPPN is to highlight references within UKG PPN 007 and the associated frequently asked questions document that are not applicable to devolved Welsh authorities (DWAs).

2.1 This WPPN has been published to assist all DWAs in Wales, including Welsh Government departments, NHS Wales bodies, Welsh Government Sponsored Bodies, local authorities and the wider public sector. This WPPN covers goods, services and works contracts being delivered in Wales.

2.2 Please circulate this WPPN across your organisation and to other relevant organisations that you are responsible for, drawing it to the specific attention of those in procurement, commercial and finance roles.

3.1 The invasion of Ukraine by Russia has been met with unprecedented global condemnation. The UK government has introduced financial and investment sanctions aimed at encouraging Russia to cease actions which destabilise Ukraine. DWAs should consider how they can further cut ties with companies backed by the states of Russia and Belarus.

4.1 Please note the following references that are not applicable to DWA:

UKG PPN 007 on GOV.UK

Section of PPN 007: Contracts with suppliers from Russia and Belarus

4.1.1 Action, Paragraph 12

Central Government organisations should note that HM Treasury consent must first be obtained for any transactions which set precedents, are novel, contentious or could cause repercussions elsewhere in the public sector, in line with Managing Public Money.

Not applicable

4.1.2 Background, Paragraph 16

In central government organisations, this should be the Commercial Director. Accounting Officers should approve final decisions to terminate any contracts under this PPN, ensuring appropriate HM Treasury consent has first been obtained.

Not applicable

4.1.3 Background, Paragraphs 22 and 23

The Department for Levelling Up, Housing and Communities has modified the effect of the Local Government Act 1988 through secondary legislation for specified bodies. The Local Government (Exclusion of Non-commercial Considerations) (England) Order 20221, came into force on 1 July 20223, to allow best value authorities4 and parish councils to apply this PPN.

The Local Government (Exclusion of Non-Commercial Considerations) (England) Order 2022 disapplies the prohibition in section 17(5)(e) of the Local Government Act 1988 in respect of Russia and Belarus. This means that the fact a supplier is Russian or Belarusian, which was previously a non-commercial consideration under the Act, can now be taken into account by best value authorities and parish councils in England, when awarding or terminating contacts in scope of this PPN. Best value authorities and parish councils in England are still bound by their obligations under the Procurement Act 2023 and should only terminate contracts or exclude suppliers where legally able to do so and in accordance with commercial considerations, as set out in this PPN.

The above issue has not been raised as significant in Wales and currently no amendment to the legislation is being pursued.

Section of PPN 007: Guidance on Contracts with Suppliers from Russia and Belarus

4.1.4 Assessing Risks, Paragraph 15

…bearing in mind this may require you to seek HM Treasury approval in some cases”

and Paragraph 16:

…Central Government organisations should note that Treasury consent must first be obtained in the usual way, for any transactions which set precedents, are novel, contentious or could cause repercussions elsewhere in the public sector, in line with Managing Public Money

Not applicable

4.1.5 Best Value Authorities and Parish Councils Guidance

Please note that the entire section of PPN 007 concerning “Best Value Authorities and Parish Councils Guidance” is not applicable for devolved Welsh authorities.

UKG PPN 007 Frequently Asked Questions Document (“Contracts with suppliers from Russia and Belarus frequently asked questions (FAQ’s)”)

4.1.6 Question 2: “Does this policy apply to the Devolved Administrations?”

This WPPN confirms the adoption of UKG PPN 007, however devolved Welsh authorities must note the areas that are not applicable.

4.1.7 Question 2.9: “My contract is via a Framework Agreement - how do I access information relating to the supply chain?”

Where your contract is via a Welsh Government Framework, you should contact the Framework manager.

4.1.8 Question 19: “Who should make the decision to terminate the contract?”

The reference:

If the termination is contentious, central government departments should seek approval from their Permanent Secretary

Not applicable

4.1.9 Question 27: “What is Section 17 of the Local Government Act 1988?”

See point 4.1.3 above and the Local Government Act 1988.

4.1.10 Question 30: “What are the Best Value considerations that local government should take into account in relation to this PPN?”

Not applicable

4.1.11 Question 31: “Will local government’s social value considerations apply to this PPN?”

 Reference; “Section 1 of the Public Services (Social Value) Act 2012” replace with “The Well-being of Future Generations (Wales) Act”

Including but not limited to:

• The Procurement Act 2023
• The Procurement (Wales) Regulations 2024
• The Well-being of Future Generations (Wales) Act 2015

This WPPN applies to procurements commenced under the Procurement Regime and is therefore effective from the commencement of the Procurement Act 2023 and the Procurement (Wales) Regulations 2024 until it is superseded or cancelled.

This WPPN aligns with the following WPPS Principles:

Principle 1

We will leverage collaborative procurement activity in Wales to maximise long-term sustainable social and economic value outcomes from public spend.

Principle 3

We will progress long-term sustainable procurement, which builds on and scales best practice and sets clear steps that show how procurement is supporting the delivery of organisational well-being objectives.

If you have any questions about this WPPN, please contact: Commercial Policy – Polisi Masnachol: CommercialPolicy@gov.wales

The following publications were utilised in the preparation of this WPPN:

• UKG PPN 007: Contracts with suppliers from Russia and Belarus
• UKG PPN 007: Contracts with suppliers from Russia and Belarus (FAQs)