FAS issued a warning to the Government of the Ivanovo region

Granting subsidies to agricultural producers, the regional Government might have violated the Law “On Protection of Competition”.

In June 2016, the Government of the Ivanovo region passed amendments to the Procedure on granting subsidies to compensate a part of the costs incurred by agricultural producers per 1 kg of milk sold and (or) shipped for processing.

According to the amendments, the annual subsidies allocated from both the federal and the regional budget to this purpose are granted in full to agricultural producers on a quarterly basis throughout a year.

In the FAS opinion, the novelty can result in discriminating milk producers, whose territory was recognized at the time of granting the subsidies adverse in terms of cattle leucosis. Later such restrictions may be removed. The Antimonopoly Service sees elements of violating Clause 8 Part 1 Article 15 of the Federal Law “On Protection of Competition” in the actions of Ivanovo Regional Government.

FAS warns to stop the above actions by introducing relevant amendments to the current Procedure for granting subsidies by16 February 2017.