A criminal case is opened against road cartel participants
Upon the materials forwarded by FAS to the Ministry of Interior
In December 2016, the Investigation Department of the Investigation Committee of the Russian Federation in the Republic of Tyva opened a criminal case (1) against executives of “Vostok” Ltd., “Dorogi Sibiri” Ltd., “No. 364 DEP” OJSC, “No. 363 DEP” OJSC and an individual entrepreneur Ogyanesyan.
In 2014 FAS found that the companies violated the Federal Law “On Protection of Competition” for concluding an agreement that resulted in maintaining prices at 6 open auctions for the construction and repair works on М-54 highway.
“Participating in anticompetitive agreements incurs not only administrative punishments upon legal entities but also criminal liability for the top executives and staff. All economic entities without exception should be aware of such facts”, commented Head of FAS Anti-Cartel Department Andrey Tenishev.
“FAS has collected sufficient evidence indicating a cartel. It was established that competitors’ price bids were identical, and then the winner hired the bidder that “refused to compete” under subcontracts, or purchased construction materials required for road repair and maintenance, leased road equipment from that bidder. Competitors also granted loans to each other to secure auction bids”, added Deputy Head of FAS Anti-Cartel Department Mukhamed Khamukov.
Courts of three Instances confirmed legitimacy of the decision made by the antimonopoly body. The total income of the cartel participants reached over 1.8 billion RUB. FAS forwarded the case materials to the law enforcement bodies.
Having investigated them, the Investigation Department of the Investigation Committee in the Republic of Tyva opened a criminal case.
Reference:
Clause “C” Part 2 Article178 of the Criminal Code of the Russian Federation – restricting competition by concluding a competition-restricting agreement (cartel) between economic entities – competitors that has led to gaining especially large income.