FAS informed Italian business about the system of public procurement in Russia and the principles of making investments in the Russian Federation
On 21 March 2017, The FAS Russia and the Competition Authority of Italy organized a Round Table in the Italian Embassy in Moscow for representatives of Italian business. It focused on developing competition policy, public procurement and specifics of control over foreign investments in strategic economic entities in Russia.
Opening the event, H.E., Ambassador Extraordinary and Plenipotentiary of the Italian Republic to the Russian Federation emphasized: “There is a close connection between the level of competition and the level of economic development”. He pointed out that recently Russia had made big steps in advancing competition policy and the Round Table would help the competition authorities of the two countries to exchange experiences of antimonopoly practices and the latest changes to the law on competition protection.
Stats-Secretary, Deputy Head of FAS Andrey Tsarikovskiy, pointed out that Russian-Italian political and economic relations traditionally are of mutual benefit*. He stressed that Italians show rather significant interest towards involvement in Russian economy.
Deputy Head of FAS informed representatives of Italian business community about FAS work, its functions of a macro-regulator, and today’s priority of Russian antimonopoly authority, among which he especially underlined countering cartels as the most dangerous economic crimes. He added that FAS and Italy Competition Authority have established a mechanism of exchanging information about potential violations, and emphasized efficiency of the countries’ cooperation within the Working Group on pharmaceuticals. Efficient antimonopoly regulation influences, in particular, national investment attractiveness, so ensuring clear rules of the game and fair competition is our main goal”, concluded Andrey Tsarikovskiy.
“Italy Competition Authority is an independent body that stimulates development of competition through the antimonopoly law and political initiatives at the level of the Government, the Parliament and the European Commission. We aspire global cooperation since in terms of the economy the national borders are opened for penetration of international economic realities, concerning operations of transnational business”, said President of Italy Competition Authority, Giovanni Pitruzzella. “We are interested in developing international cooperation and strengthening relations with FAS that can be useful for foreign companies operating in Russia and investing in the economy of the Russian Federation.”
According to President of Italy Competition Authority, Russia is on 6th position in the scope of investment by Italian business. He confirmed that “it is important for us that Italian business is aware of the rules of working in Russia, particularly, in those fields that are supervised by FAS – competition protection and control over foreign investments”.
Head of FAS Department for Control over Foreign Investments, Andrey Yunak, described the procedure for exercising transactions with strategic economic entities (under No. FZ-57 Federal Law) and the procedure for FAS considering relevant petitions regarding transactions. “The Federal Antimonopoly Service is some kind of an informational-and-analytical centre at the Government Commission for Control over Foreign Investments in the Russian Federation that makes decisions on preliminary approvals of transactions. In nearly 9 years of enforcement of No. FZ-57 Federal Law, FAS received 447 petitions, of which 218 was considered by the Government Commission, and petitions were denied only in 13 cases, said Andrey Yunak. “Favourable investment climate positively affects competition, so attracting foreign investments is a guarantee of competition development”. In the near future FAS in the person of Department for Control over Foreign Investments intends to analyze its own work under the frame of monopoly and investment control as well as in other spheres to eliminate excessive administrative barriers. FAS plans to access regulatory impact upon foreign investor conduct and identify gaps in the investment law.
Head of FAS Department for Control over Public Procurement, Tatiana Demidova, informed the audience about public procurement in the Russian Federation, the history of establishing the system. She pointed out that “the main principle of procurement is its publicity: information about all procurement is placed on a single portal zakupki.gov.ru”. She pointed out that No. She also pointed out at No.223-FZ Federal Law (the Law on Procurement) is more formalistic than No.44-FZ Federal Law (the Law on Contractual System). “Since 1 January 2017 unitary enterprises are transferred to procurement under No.44-FZ Federal Law”, added Tatiana Demidova and emphasized that in prospect, Russian procurement law will continue developing: two draft laws are now submitted to the State Duma of the Russian Federation.
Head of FAS Igor Artemiev discussed with Cesare Maria Ragaglini and Head of Italy Competition Authority issues of participation of Italian pharmaceutical companies and producers of medical equipment in public procurement, localizing production within the Russian Federation and investing into Russian economy.
Igor Artemiev emphasized: “Cooperation between our countries in the field “of antimonopoly regulation is an essential link in partner relationships between Italy and Russia”.
*Cooperation between Russia and Italy in the field of competition policy has been ongoing for nearly 20 years. Relationships between the antimonopoly bodies of the two countries started by signing a bilateral Declaration of Intent in July 2000. Nowadays the competition authorities interact continuously under the frame of the Organization for Economic Cooperation and Development, UNCTAD, the International Competition Network, and International Working Groups. Current joint efforts between FAS and Italy Competition Authority are based on a\the Memorandum of Understanding concluded in September 2016 at the International Competition Week in Russia.