Offset reversal: modernization of the social sphere through PPP has begun in Russia

In early December 2025, a long-term contract entered into force in the Volgograd Region, which the regional administration concluded for catering in 11 regional social security institutions. Its amount is 11.3 billion rubles, the term is 10 years. The winning company is obliged to carry out at least the modernization of food stores and its production plant in the amount of 100 million rubles or more. This is the first offset service contract in Russia, before that, the subject was only the supply of products. The pilot project has been prepared by the regional government for several years. Experts are optimistic about the possibility of concluding such agreements in this area, but they are waiting for the first results. For more information, see the Izvestia article.

What is the essence of the contract?

The contract is divided into 11 lots, according to the number of social service houses in which the winning company will operate. Among them: eight neuropsychiatric boarding schools (Volzhsky, Volgogradsky, Uryupinsky, Kotovsky, Surovikinsky, Nizhnedobrinsky, Kalachevsky, Zhirnovsky), two rehabilitation centers for children with disabilities (Trust and Nadezhda) and one boarding home for the elderly and disabled (Macheshansky). Work on the contract began on December 1.

The parties call it the "first large-scale investment project" between private business and the state in the field of social nutrition. The maximum amount of project financing for 10 years is set at 11.3 billion rubles. Payment will be made upon the provision of services. The third participant in the process is Sberbank PJSC, which will provide banking support and control over the targeted use of funds.

As Ksenia Tyurina, director of VIVO Market, explained to Izvestia, the company's approach to working out the investment component of the contract provides for "a phased modernization of the entire social catering infrastructure, both at the contractor's production facilities and in the participating institutions of the project." The minimum amount of mandatory investments under the terms of the contract is 100 million rubles. However, this amount is not final: in addition to the investments stipulated in the contract, significant additional investments directly related to the provision of services will be required. Their exact volume, as well as the list of specific transformations and the final amount of investments, will be determined based on the results of an audit of the current state of food stores, dining areas and processes. It can include both renovation of equipment and repair of dining areas.

A mandatory block of investments under the contract is the modernization of the production plant of the company itself.

"We plan to modernize the workshops where products will be produced for the participating institutions. Our task is to diversify the menu, simplify the work of the staff and centralize it, centralize the supply of raw materials. This is a balanced decision for the region, which opens up additional development opportunities: the budget does not incur additional costs for the purchase of services, but at the same time receives private investments in infrastructure, new jobs and additional tax revenues.Looking more broadly, we plan to build a system process that will work after the expiration of the contract, including digitalization of processes, automation of logistics and the formation of a unified technological base."

Ksenia Tyurina also stressed that part of the audit will be a survey of the participating institutions in order to "identify their real needs and focus on them first."

In particular, for this purpose, the company is negotiating a systematic partnership with federal and regional charitable foundations working with social protection institutions (formerly PNIs). It is planned to integrate specialists into the development of the modernization map and the implementation of the project.

The administration of the Volgograd Region told Izvestia that the mechanism for concluding a long-term contract "will optimize budget expenditures for the purchase of goods, works or services, as well as increase the efficiency of budget expenditures and attract investment funds to improve the infrastructure of social institutions and further improve the quality of social services."

The company believes that the Volgograd experience can be taken into account and used to modernize social nutrition in other regions of the country.

- "This particular project is a pilot project for the social sphere of the Volgograd region. If it is successfully implemented, we will be happy to share this experience. And we certainly feel a lot of responsibility," said Ksenia Tyurina.

The administration of the Volgograd region also stressed that "further implementation of this mechanism in the social protection system will be considered in accordance with the results achieved."

Vladimir Chernigov, President of the Institute of Industrial Nutrition, told Izvestia that the market is very closely monitoring the situation in this region.

How to calculate the cost of food for 10 years

The administration of the Volgograd Region explained that the food supplier undertakes to provide high-quality food from December 1, 2025 to November 30, 2035.

— The cost of catering services during the entire term of the contract for each subsequent year is calculated according to the formula. It was developed using the consumer price index for the Volgograd region based on data published by Rosstat, as well as based on the ratio of the projected minimum wage in Russia, the administration explained.

Ksenia Tyurina from VIVO Market stressed that the terms of the contract were formed by the customer, and the company "does not see anything illogical in them."

— The maximum amount of contracts under the offset contract is 11.3 billion rubles for the entire 10-year term of the contract. Payment will be made upon the fact of catering for the amount that the customers actually received, after signing the acceptance certificates. For the first year of the contract, the maximum value of the service is fixed in the contract. For subsequent years, the cost is calculated according to the formula stipulated in the contract, taking into account inflation coefficients," the Izvestia interlocutor said, adding that this allows the price to be adapted to changing economic conditions and protects the budget from a sharp increase in costs.

She stressed that the initial maximum contract price will remain unchanged and "will not exceed the fixed values."

The contract (available to Izvestia) does indeed contain a formula for determining the cost of providing meals. There are two formulas: for the first year of service provision and for all subsequent ones, where unknown values appear.

— The formula is written really quite competently, the most important thing is that the base of calculations and indexing contains the average annual cost of food for the previous year, — said Vladimir Chernigov.

Do I need offset contracts in the social network

Head of the Law Center. Guru Alexander Evstashenkov noted that the essence of the offset contract is the guarantee of sales. Moreover, the government or the regional administration must authorize the customer to conclude such a contract by their act.

— Law No. 44-FZ also has a number of significant restrictions on the conclusion of offset contracts, including the amount of investments that the procurement participant must invest in the project, — continued the interlocutor of Izvestia. — The minimum value is 100 million rubles.

According to Alexander Evstashenkov, regions usually receive new production facilities and jobs due to this, but in return they guarantee the investor the purchase of a manufactured product or service from him.

"There is a key risk in concluding offset contracts, which is the sustainability and transparency of commitments over 10 years," said Valery Alekseev, head of the Popular Front's Bureau of Investigation. — If a supplier who has received such a long-term contract stops fulfilling his duties for one reason or another, it is necessary to understand in advance the mechanism for replacing the contractor, terminating the contract and, most importantly, what will happen to the equipment and the purposes for which the contract was concluded.

Currently, as part of the discussion of the draft law "On Social Nutrition", they are thinking about creating regional operators by analogy with other areas, said Vladimir Chernigov. This will make it possible to hold a competition between strong market players, and it is easy to change the catering operator if the current one suddenly fails.