The Protocol of the 28th meeting of the Interstate Council on Antimonopoly Policy
1-2 October 2008, Astana
Members of the Interstate Council on Antimonopoly Policy and representatives of the CIS countries have participated in the meeting:
from the Republic of Armenia:
Ashot SHAKHNAZARYAN - Member of the ICAP, The Chairman of the State Commission on protection of economic competition
Armen GEVORKYAN - Member of the ICAP, The Deputy Minister of trade and economic development
Vagan EGIAZARYAN - The Chief of staff of the Commission on protection of economic competition
from the Republic of Belorussia:
Alexander SHKATULOV - Member of the ICAP, The Deputy Director of Department of Ministry of Economics
from the Republic of Kazakhstan:
Mazhit ESENBAEV - The Chairman of the Agency on competition protection
Zhanat KOZHAKHMETOV - The Deputy Chairman of the Agency on competition protection
Boris PARSEGOV - The Deputy Chairman of the Agency on competition protection
Nurlan ABDI - The Executive Secretary of the Agency on competition protection
from the Kyrgyz Republic:
Arslan DZHAMANKULOV - The Vice Director of the State Agency on Antimonopoly Policy and Competition Development affiliated to the Government of the Kyrgyz Republic
Keneshbaj TAJLAKOV - The Head of the Control Department of the State Agency on Antimonopoly Policy and Competition Development affiliated to the Government of the Kyrgyz Republic
from the Republic of Moldova:
Viorica KERARE - Member of the ICAP, The General Director of the Public Agency for the Competition Protection
Oktavian KARAZHAYA - The Consultant of the Investigation Department of the Public Agency for the Competition Protection
from the Russian Federation:
Igor ARTEMIEV - The Chairman of the ICAP, The Head of the Federal Antimonopoly Service of the Russian Federation
Anatoly GOLOMOLZIN - The Deputy Head of the Federal Antimonopoly Service of the Russian Federation
Lesya DAVYDOVA - The Head of the Department for International Economic Cooperation of the Federal Antimonopoly Service of the Russian Federation
Vladimir ROKHMISTROV - The Head of the Stavropol Regional Office of the Federal Antimonopoly Service of the Russian Federation
Anna MIROCHINENKO - The Deputy Head of the Department for International Economic Cooperation of the Federal Antimonopoly Service of the Russian Federation
Dmitry RUTENBERG - The Deputy Head of the Department for Control over Transport and Communications of the Federal Antimonopoly Service of the Russian Federation
Irina EPIFANOVA - The Deputy Head of the Department for Control over Chemical Industry and Agricultural-Industry Complex of the Federal Antimonopoly Service of the Russian Federation
Tatyana SAVCHENKO - The Head of the Division for Economic Integration with the CIS countries of the Department for International Economic Cooperation of the Federal Antimonopoly Service of the Russian Federation
from the Republic of Tadzhikistan:
Amonullo ASHUR - The First Deputy Minister of Economic Development and Trade
Akbar KHODZHIEV - The Head of the Division of Competition Development and Antimonopoly Activity of the Ministry for Economic Development and Trade
from the Republic of Uzbekistan:
Umar TURDIEV - The Vice Chairman of the State Committee for Deregulation, Support for Competition and Entrepreneurship
Zakir UMAROV - The Deputy Head of the Juridical Department of the State Committee for Deregulation, Support for Competition and Entrepreneurship
from the Ukraine:
Yurij KRAVCHENKO - The Vice Chairman of the Antimonopoly Committee of Ukraine
Valentin SADYUK - The Head oа the Department for Investigations on the Transport and Communication Markets of the Antimonopoly Committee of Ukraine
from the Executive Committee of the Commonwealth of the Independent States:
Eugeny NOVOZHILOV - The Vice Chairman of the Executive Committee - the Executive Secretary of the Commonwealth of the Independent States
Azam USMANOV - Member of the ICAP, The Head of the Secretariat of ICAP, The Deputy Head of the Division of the Executive Committee of the Commonwealth of the Independent States
Guests:
MAKSIMOV Karim - The Prime Minister of the Republic of Kazakhstan;
SHUKEEV Umirzak - The Deputy Prime Minister of the Republic of Kazakhstan;
The representatives from the legislative and executive bodies of the Republic of Kazakhstan and Agency for competition protection of the Republic of Kazakhstan
The representatives from the Romanian Competition Council:
Mr. Alexe GAVRILA - the Vice President of the Romanian Competition Council;
Mr. Sergiu PARA - the Competition Inspector of the Romanian Competition Council
1. On the activity of the Kazakhstan national Competition Authority on suppression of the monopolistic activity and unfair competition
_____________________________________________________________________________________________________
(M. Esenbaev, I. Artemiev)
1. To take into consideration information on the activity of the Agency for Protection of Competition of the Republic of Kazakhstan concerning this issue (attached) presented by M. Esenbaev, the Head of the Agency on Protection of Competition of the Republic of Kazakhstan and the ISAP' member.
2. To underline the positive experience on conducting joint events on exchange of experience between Competition Authorities of the CIS member-states and to work out the question on foundation of training center for the employees of the Competition Authorities of CIS member-states.
3. To include the issue on «Competition conditions on the petroleum oil and lubricants markets in the CIS member-states» into the draft Action plan of ISAP for 2009-2010 at the suggestions of the Kazakhstan Republic.
4. To emphasize the large-scale activity on improvement of the national competition legislation, control over its realization, promotion and development of fair competition that was done by the Agency on Protection of Competition of the Republic of Kazakhstan since its establishment.
5. To recommend the ISAP' members of CIS member-states to use the positive experience of the Competition Authority of the Kazakhstan Republic when solving practical issues on ensuring and developing of the competition conditions on commodity markets.
6. To recommend the representatives of the Kazakhstan side in ISAP together with ISAP' Secretariat to consider the expediency for preparing and presenting the report «On conditions and perspectives of competition policy in the Kazakhstan Republic» for its consideration by the Economic Council of CIS member-states in 2009.
7. To express gratitude to the Agency on Protection of Competition of the Republic of Kazakhstan for organizing and holding the Jubilee ISAP Meeting at a high level.
2. On implementation of the decisions of the 27th Meeting of the Interstate Council on Antimonopoly Policy of the CIS Member-States (ICAP)
______________________________________________________________________________________________________
(A. Usmanov, I. Artemiev)
1. To take into consideration the information on this issue given by A. Usmanov, ISAP' member, the Head of the Secretariat of ISAP.
2. To note that the decisions taken during the 27th ISAP Meeting and issues included in the Action plan of the ISAP for 2007-2008 have been principally implemented. Part of these decisions shall be considered during this ISAP Meeting in accordance with the agenda.
3. The Council members should adjust a list of proposals (attached) for inclusion to the Action plan of the ISAP Meeting for 2009-2010, specifying the specific topic of the considered issue and the speaker considering the accomplished discussion.
To submit the proposals to the ISAP' Secretariat by 1 December, 2008.
3. Information on the most noticeable events in the competition policy that happened during the period between the ISAP Meetings in the CIS countries
______________________________________________________________________________________________________
(A. Usmanov, I. Artemiev, A. Shakhnazaryan, A. Ashur, U. Turdiev, Y. Kravchenko, A. Gavrila, V. Kerare, M. Esenbaev, V. Doskalov, A. Dzhamankulov)
1. To take into consideration the information on this issue given by ISAP' members.
2. To specify that the issues «On conditions and perspectives of competition policy in the Ukraine» and the Report on the state of competition in the air transportations markets of the CIS member-states were considered during the CIS' Economic Council and were given the positive assessment. There was a taken decision on considering this question during the meeting of the Council of the Heads of the Governments of CIS member-states (November 14, 2008, Kishinev) taking into consideration the significance of the competition development on the avia transportation passengers market.
3. To express gratitude to the FAS Russia for organizing and holding in Moscow on September, 2008 the internship for the specialists of the Competition Authorities of the CIS member-states including representatives from Kazakhstan, Uzbekistan, Tajikistan, Ukraine, Moldavia and the consultation meeting of the FAS Russia representatives held in Uzbekistan. To recommend to continue the practice of holding joint internships and consultation meetings between competition experts of CIS member-states.
4. To underline the opinion of the ISAP members on the necessity to increase effectiveness of anti-cartel activity, as considering cartels the most heavy infringement of the competition law, and to envisage inclusion of the issue «On anti-cartel activity in the CIS member-states» into the ISAP' Action plan for 2009-2010.
5. To take into consideration the Report on the competition activity of the Romanian Competition Authority and European Commission made by Mr. A. Gavrila, Vice President of the Romanian Competition Council.
6. To consider the possibility of inviting the representatives of the European Commission to the ISAP Meetings and to the Meetings of Headquarters on joint investigations of violations of the antimonopoly legislation in CIS member-states.
7. A. Usmanov, the Head of the ISAP' Secretariat together with the Competition Authorities of Kazakhstan Republic and the Russian Federation is to prepare the comparative analysis of the regulatory framework on the key directions of the CIS' Competition Authorities' activity and to provide its regular updating and publicity.
8. The Head of ISAP' Secretariat, A. Usmanov, is to work out the issue on elaboration of the ISAP' reward signs for the development of competition policy.
4. On the results of activity of the Headquarters on joint investigations of violations of the antimonopoly legislation in CIS member-states (hereinafter the Headquarters)
______________________________________________________________________________________________________
(A. Golomolzin, A. Usmanov, I. Artemiev, A. Shakhnazaryan, A. Ashur, U. Turdiev, Y. Kravchenko, A. Gavrila, V. Kerare, M. Esenbaev, V. Doskalov, A. Dzhamankulov, A. Gevorkyan)
1. To take into consideration the information presented by A. Golomolzin, Head of the Headquarters, on the activity of the Headquarters on the infringement of the competition law during the period between the ISAP meetings (the Protocol of the Headquarters Meeting is enclosed).
2. On the avia transportation market analysis in the CIS countries.
2.1. To approve the work on preparing and presenting the Report on the state of competition in the air transportation markets of the CIS member-states (hereinafter - the Report).
To recommend the ISAP members to encourage the employees who took part in preparation of the Report.
2.2. A. Usmanov, the Head of the ISAP Secretariat, is to promptly send the final version of the Report to the Parties.
The Parties that didn't take part in the preparation of the Report are to send their position on the Report to the Headquarters by November 1, 2008.
2.3. To take as a ground the draft Plan of operational actions procedures on measures' realization that were determined in the Report prepared by the Headquarters (Appendix 1 to the protocol of 7th ISAP meeting).
2.4. To approve in general the following approaches to the joint consideration of cases on the competition law infringement on the particular routes: simultaneous initiating of proceedings by Competition Authorities of interested Parties in case of presence of features of competition law infringement and simultaneous issuance of decisions and instructions according to the results of consideration.
2.5. To approve in general the list of routes that were determined for joint investigations on the competition law infringement. (Appendix 2 to the 7th Headquarters meeting Protocol)
2.6. By October 15, 2008 interested Parties are to:
- submit there comments on this list
- inform about their readiness to hold joint investigations of cases on the routes specified in the list stating the possible date of starting the investigations.
- determine the person responsible for joint case investigation on the routes included in the list.
- submit the proposals on the methodology of holding joint case investigation taking as a basis the proposals of Moldova (Appendix 3 to the 7 Headquarters Protocol) including the questions of prevention of consumers' interests infringement to the Headquarters.
2.7. Within the frameworks of joint investigations on the competition law infringement on the determined routes where the competition to conduct the tariff setting analysis from the perspective of its transparency for the end user and the preparation of the corresponding proposals on this issue together with the International Aviation Committee.
3. On the telecommunication sector market analysis in the CIS member-states.
3.1. The Parties are to submit the information about cases on the infringement of the competition law in the telecommunication sector by November 1, 2008.
3.2. The Parties that take part in the investigation of the international telecommunication services are to submit the list of telecommunication operators that were given the corresponding inquires with the notice about the used technology for provided services (fixed and mobile telecommunication, IP telephony) to the Headquarters by October 15, 2008.
3.3. To note that Parties can participate in the analysis of separate sectors of international communication service market according to their authorities.
3.4. The Parties are to submit to the Headquarters by November 1, 2008 the information on the separation of responsibilities between the Competition Authorities and other telecommunication market regulators.
3.5. The Parties are to prepare and submit by December 1, 2008 the proposals about the use of the international telecommunication market analysis results with the aim to develop the competition on this market.
3.6. To discuss the information received as a result of inquiry and the preliminary analysis results during the next Headquarters Meeting.
4. About the analysis of the grain market in the CIS countries.
4.1. To take the methodological recommendations that consider the peculiarities of the grain market prepared by the Russian Party as a ground.
4.2. To note the multisegmentation of the grain market in terms of commodity rendered services and geographic borders.
4.3. To note the necessity of information support in the grain market analysis including participation of other executive authorities (statistics, customs, taxes and other authorities).
4.5. The Parties are to submit the information on the legal framework of the grain market and regulation cases on the infringement of the competition law on this particular market to the Headquarters and also to give their reasons on the readiness to participate in the grain market investigation by 1 November, 2008.
4.6. Russian Party is to complete the following methodological recommendations taking into consideration the discussion:
- by adding general sections of the analysis and competition environment assessment
- by determining «the corn» as food boarders
- by determining country and cross-country markets as a geographic borders
- by determining the interval of 2 agricultural years (2006-2007 and 2007-2008) as time period and also a calendar year divided by half years
- with state aid actions
- with market structure including participation of the state enterprises and resellers
- with consideration of issues of control over economic concentration including the foreign investors participation
4.7. The Russian Party is to send the draft Methodological recommendations completed in accordance with the article 4.6 to all Parties by November 10, 2008.
4.8. The Parties are to send the comments on the completed methodological recommendations to the Russian Party by the November 25, 2008.
4.9. Russian Party should submit methodological recommendations completed in accordance with the comments of the Parties for its discussion during the Headquarters meeting.
4.10. To consider the proposals of the Kazakhstan Party about the flour market research expansion.
5. To hold the regular Headquarters meeting on the second decade of the December 2008 and to send the invitations to the Parties on behalf of ISAP by the October 10, 2008.
6. To include the following in the list of priority themes of the Headquarters' work.
- conducting of the analysis of the petroleum oil and lubricants markets in the CIS member-states
- conducting of the cartel investigation.
To create two subgroups for improvement of the cartel investigation and for holding joint investigations on the petroleum oil and lubricants markets in the CIS countries in the framework of the Headquarters at the level of Deputy Heads of Ukraine and Kazakhstan Competition Authorities.
7. The Parties are to send the proposals on the perfection of cooperation forms including the information about the existence of technical capabilities of remote communicating forms (selector, audio and video conferences) to the Headquarters by November 1, 2008.
5. On the railway transport reform in the CIS member-states (on the example of the Kazakhstan Republic and the Russian Federation)
______________________________________________________________________________________________________
(N. Kilybay, E. Kizatov, I. Artemiev, M. Esinbaev, A. Golomolzin, A. Usmanov, A. Shakhnazaryan, Y. Kravchuk)
1. To take into consideration information on the railway transport reform in the Kazakhstan Republic and the Russian Federation (attached)
2. To note that these two states do a lot of work on the railway transport reforming although there is a number of problems, including the transition from the monopolistic to the competitive condition in the sector.
3. To recommend the ISAP' members to activate the work on the suppression of the competition law infringements committed by the railway carriers occupying dominant position on the market.
To pay special attention to the prohibition of refusals to conclude an agreement with certain customers, discrimination conditions of the access to the transportation services and railway transport infrastructure services, imposing additional unregulated services and/or cargo transportation under special conditions.
4. The Kazakhstan Party is to consider the possibility for holding seminars on competition development in the railway transport sphere with the participation of all the interested Parties.
6. On the realization of the system on the competition conditions observance and staid aid provision
______________________________________________________________________________________________________
(Y. Kravchenkop, I. Artemiev, J. Kozhakhmedov, Z. Umarov, A. Shakhnazaryan, K. Taylakov)
1. To take into consideration the information of the Parties concerning the application of the system on the observation of the competition conditions when providing state aid.
2. To note that the creation of the effective system for control over state aid provision has the great importance for the provision of competition conditions on the corresponding commodity markets.
3. To recommend the Parties to use the experience of the Russian Federation and Ukraine on the control over observance of competition conditions when providing the state aid in the countries, including within the frameworks of control over state authorities activities.
7. The Information on Formation of Common Economic Space
______________________________________________________________________________________________________
(A. Golomolzin, M. Esenbaev, I. Artemiev, A. Usmanov)
1. To take into consideration information of the Russian Party on this issue.
2. To notice that activity within the frameworks of the given direction can become a good basis for the further harmonization of national antimonopoly legislation of the CIS member-states, and also elaboration of the direct cooperation in the field of competition policy that promotes economic integration of the CIS member-states.
3. To consider enhancement of the coordinating role of ICAP in the field of cooperation of the CIS member-states as necessary in the field of the improvement of the regulatory and legal framework and in practical activities.
4. To recommend to antimonopoly authorities of the Belarus and Kazakhstan Parties to send their representatives to negotiations on the sector agreements developed within the frameworks of formation of the Common Economic Space of Republic of Belarus, Republic of Kazakhstan and the Russian Federation.
8. On results of monitoring on regional (cross-country) cement markets
______________________________________________________________________________________________________
(I. Artemiev, Zh. Kozhakhmetov)
1. To take into consideration information of the Russian Party about current situation on the cement markets, and also information of the Kazakhstan Party about intermediate results of monitoring on cross-country cement markets.
2. The Kazakhstan Party should send to the other Parties the information on results of the monitoring of the cross-country cement markets.
3. To pay attention to the questions concerning economic concentration on the market of cement production and its realization on the cross-country cement markets.
4. To take into consideration the information of the Kazakhstan Party about feature detection on restriction of competition in actions of the Administration of the Kemerovo Region in conjunction with Kemerovskiy Cement Plant.
5. To recommend to the Parties to give particular attention to the problems connected with transportation of the cement by railway transport.
6. To recommend to the Parties to study experience of the antimonopoly authorities of the CIS member-states on validity of prices for cement for the enterprises-monopolists in compliance with the high profitability of this brunch and necessity of allocation of considerable facilities for its technological modernization.
9. Competition policy in development of the real estate market
______________________________________________________________________________________________________
(I. Artemiev, U. Kravchenko, A. Usmanov)
1. To take into consideration information of the Russian and the Ukranian Parties on control over enforcement of competition conditions at the real estate market.
2. To notice the actuality of work realized by antimonopoly authorities in this field in compliance with social importance of the real estate market.
3. To recommend to the ICAP members to use the experience of the Russian Federation and the Ukraine in this field, among them are introduction of mechanisms of realization of land auctions by granting of the land for housing construction. Taking into consideration the necessity of providing equal rights for economic entities under distribution of rights for the lands that will provide competition development not only in the field of the land relations, but also in many other related markets, for example, the construction.
4. To recommend to the Parties to exchange the experience on providing for competition pricing at the real estate market.
10. On the next meeting of the ICAP
______________________________________________________________________________________________________
(A. Usmanov, I. Artemiev, V. Kerare)
1. To take into consideration the suggestion of the Kyrgyz Party on holding the 29th Meeting of the Interstate Council on Antimonopoly Policy in May-June, 2009 in Bishkek (the Kyrgyz Republic).
2. To delegate to the Secretariat to prepare the draft agenda of the ICAP, taking for the basis the presented list of the questions offered to consideration (attached).
3. The ICAP members are to submit to the Secretariat their remarks and suggestions to the draft agenda of the 29th Meeting of the ICAP by the December 1, 2008.
4. To thank to the Uzbekistan Party for the suggestion to hold the next meeting of the ICAP in Tashkent (the Republic of Uzbekistan) and to ask it to consider the possibility of holding one of the Meetings of the of the Headquarters of Joint Investigations on the Violations of Antimonopoly Legislation in the CIS member-states in Republic of Uzbekistan in 2009.
11. Other
______________________________________________________________________________________________________
(I. Artemiev)
1. To take into consideration the information of the Russian Party on the Non-profit partnership activity «Assistance to competition development».
The ICAP members are to consider the possibility of creation within the frameworks of the CIS the experts association of the competition layers and economists, like the «assistance to competition development».
2. To recommend to the antimonopoly authorities of the CIS member-states to assist cooperation with their regional offices on the border territories.
The Chairman of the Interstate Council on Antimonopoly Policy,
The Head of the Federal Antimonopoly Service
Igor Artemiev
