Forestry Department created discriminatory conditions for forest plot leaseholders

Court of First Instance supported a decision of Primorie OFAS

Earlier, Primorie OFASfound that the Forestry Department of the Primorie region had violated Part 1 Article 15 of the Federal Law “On Protection of Competition”. The Department formed discriminatory conditions for leaseholders of forest plots used for recreation by unreasonably fixing the lease fee that exceeded the minimum specified in Article 73 of the Forestry Code of the Russian Federation, in the lease contracts concluded priori to 01.01.2007.

Having investigated the case, the antimonopoly body found that the Forestry Department of the Primorie region had violated Part 1 Article 15 of the Federal Law “On Protection of Competition” that prohibits the authorities to exercise actions (omissions) which lead or can lead to restricting competition.

OFAS issued an injunction upon the fact of the violation to eliminate it.

The Department disagreed with the conclusions of the antimonopoly body and filed a lawsuit to Primorie Regional Arbitration Court.

On 5 April 2017, Court of First Instance supported Primorie OFAS and upheld the decision and injunction.