FAS submitted a draft report on the State of Competition to the Government of the Russian Federation
The major theme of the year is pro-competitive tariff policy
On 31 May 2017, the Federal Antimonopoly Service (FAS Russia) submitted a draft report on the State of Competition to the Government of the Russian Federation.
FAS prepares the document based on the Federal Law “On Protection of Competition” and submits it annually to the Government.
In the Report, FAS sums up the main results of the national competition policy, analyzes the most significant changes in the law, presents the survey findings on the state of competition in some sectors of the economy and outlines the main issues of their performance.
The document was devised in joint efforts with the federal bodies and non-profit business associations*.
The Report determines the theme of the year as pro-competitive tariff policy. The relevant section analyses the issues in this field of the economy, presented a concept of pro-competitive tariff policy and the methods of adopting it as well as implementation problems and ways to solve them.
A special section focuses on cartelization of Russian economy. In 2016 FAS opened 692 cases on anticompetitive agreements, of which 330 cartel cases - 18% more than in 2015 (282 cases). More than 80 % cartel cases concern bid-rigging (298 cases), which is nearly 30% more than in 2015 (232 case). The Report gives methods of overcoming this negative phenomenon in Russia.
In this Report FAS describes in detail the system-wide problems of the law on concession agreements. Previous Reports of antimonopoly body just touched the issue. This year FAS devotes a special section to it. According to the Report authors, the authorities, avoiding the Law on contractual system, undertake obligations to finance public-private projects, which result in inefficient spending of budgetary funds and unreasonably overrating the costs of infrastructure facilities.
The position of the Antimonopoly Service was supported by Moscow Arbitration Court on 1 June 2017 in a case against the State Committee of the Republic of Bashkortostan on Transport and Road Facilities.
In the final part of the Report FAS outlines the main goals and objectives on improving the state policy towards developing competition in the Russian Federation.
* The Report is drafted jointly with the Expert Council at the Government of the Russian Federation, the Ministry of Economic Development, federal executive bodies, the Analytical Centre at the Government of the Russian Federation, the “Strategic Initiatives Agency” Autonomous Non-Profit Organization, and NGOs (including “OPORA Russia” All-Russian NGO for Small and Medium Business, “Business Russia” All-Russian NGO, the Chamber of Trade and Industry of the Russian Federation, the Russian Union of Industrialists and Entrepreneurs, “Corporate Counsel Association” Non-Profit Partnership).