Austrian companies learned about Russian competition law

Representatives of Austrian companies in Russia were given exhaustive information about the work of Russian antimonopoly body, control over public procurement, foreign investments, advertising and unfair competition in Russia

On 8 December 2016, the Federal Antimonopoly Service (FAS Russia) held a “Russian Competition Law” hands-on workshop for representatives of Austrian business in Russia.

Opening the workshop, Deputy Head of FAS Maxim Ovchinnikov emphasized: “The Antimonopoly Service is interested in facilitating investments to Russian economy since is encourages development of a competitive environment. Antimonopoly regulation in Russia does not divide companies by the owner’s origin. Equal requirements apply to all companies without exceptions and the necessary protection is given in line with the standards of the antimonopoly law”.

According to Deputy Head of FAS Sergey Puzyrevskiy, the latest changes to the Federal Law “On Protection of Competition” introduced with adopting the so-called “forth antimonopoly package” transferred FAS into a body of preventative control.  He said: “In some cases companies that promptly eliminated a violation of the antimonopoly law are not punished. This does not apply, however to the companies involved in cartels”.

Speaking about the state of Russian-Austrian economic relations, Rudolf Lukawski, a commercial advisor, the Embassy of Austria in Russia, pointed out that Austrian companies do business in Russia in the woodworking sector, pulp-and-paper industry, manufacturing car parts and construction materials as well as in banking services. According to a survey, presented by Rudolf Lukawski, 2/3 of Austrian companies operating in Russia emphasize that the economic situation in the country has stabilized and expect positive changes. Today there are around 500 active investors in the Russian economy.

One of items on the workshop agenda was FAS powers in control over foreign investments in Russian strategic companies. Head of FAS Department for Control over Foreign Investments, Andrey Yunak, discussed in detail regulation of transactions with regard to strategic companies and highlighted some statistical data on considering petitions filed to FAS. According to Andrey Yunak, in 8 years when the Law on the procedure of foreign investments in strategic companies has been in force, FAS has received 434 petitions, of which only 12 were refused by the Government Commission. Currently the Department is considering 6 petitions. Since 2011 FAS received and examined three petitions from Austrian investors, one of which was considered and approved at the Government Commission for Control over Foreign Investments, others did not require the Commission’s approval.

Finally, Head of FAS Department for Control over Foreign Investments stated that Russian competition authority carefully watches the modern trends in this area, and studies experience of foreign countries – OECD members in the field of regulating strategic investments. FAS does not plan any cardinal changes to Russian investment law which meets moderns trends and requirements.

Deputy Head of FAS Department for Control over Advertising and Unfair Competition, Yana Sklyarova, drew the participants’ attention to one of essential elements for protecting competition and companies that enter the market:  trademarks.

Tatiana Demidova, Head of FAS Department for Public Procurement Control, presented the relevant enforcement practice of the antimonopoly authority.