Highway machinery must not be provided without

On 16th September 2013, the 11th Arbitration Appeal Court (Samara) pronounced legitimacy of a decision and determination issued by the Office of the Federal Antimonopoly Service in the Ulyanovsk region (Ulyanovsk OFAS Russia) to the Committee of Road Facilities, Capital Improvement and Transport, at Ulyanovsk City Authority on unlawfully granted state and municipal preference.

The Committee violated the law by granting from 1st May 2012 highway equipment “Ulyanovskdorrembytservice” Municipal Unitary Enterprise for the free use without competitive bidding. The equipment was purchased by Ulyanovsk Authority for the price over 569 million Rubles. The Committee failed to exercise actions to return the property, thus, putting “Ulyanovskdorrembytservice” Municipal Unitary Enterprise in an advantageous position on the market, which, in its turn, could have resulted in preventing, restricting or eliminating competition.

Ulyanovsk OFAS Russia issued a determination to the Committee of Road Facilities, Capital Improvement and Transport, at Ulyanovsk City Authority to stop violating the antimonopoly law by withdrawing highway machinery from “Ulyanovskdorrembytservice” Municipal Unitary Enterprise.

The Committee disagreed with the decision and determination issued by the antimonopoly body and filed a lawsuit. However, the 11th Arbitration Appeal Court pronounced legitimacy of the actions undertaken by Ulyanovsk OFAS Russia.

“OFAS watches how state and municipal preferences are granted. We are glad that the Court confirmed legitimacy of our decision. We call to everyone to comply with the antimonopoly law and do not violate the law granting state preference”, commented Deputy Head of Ulyanovsk OFAS Russia, Constantine Popov.