A new case upon signs of a medicinal drug cartel is opened in Karelia

Karelia OFAS opened a case against three companies, suspecting their involvement in a cartel at 87 auctions for supplying medical equipment and drugs

The antimonopoly body exposed cartel signs at 87 e-auctions for supplying medicinal drugs and medical equipment in 2014 – 2016.

The government customers were 20 health care institutions in the Republic of Karelia. The total sum of the initial contract prices exceeded 66 million RUB.

According to Karelia OFAS, anticompetitive agreements between bidders allowed them to win most of the auctions with the minimum price reduction - from 0.5 to 1.5%.

Head of Karelia OFAS Artur Pryakhin pointed out: “Opening the antimonopoly case is a result of interaction with the Investigation Department of the Investigation Committee of the Russian Federation in the Republic of Karelia and the Department of the Ministry of Interior on Economic Security and Anti-Corruption in the Republic of Karelia. Cartels are serious economic inflicting considerable harm to the budget of the Republic and its population”.

Andrey Tenishev, Head of FAS Anti-Cartel Department, said: “Overall, the antimonopoly bodies in Russia opened more than 70 cases against bid-rigging cartels for procurement of medications and medical products in 2016 and the beginning of 2017. The total losses from operations by such cartels reach billions of Rubles”.