IGOR ARTEMIEV: ADOPTING THE NATIONAL COMPETITION DEVELOPMENT PLAN IS AN UNPRECEDENTED EVENT
Head of FAS informed journalists about the main provisions of the National Competition Development Plan
“The National Competition Development Plan, approved by an Order of the President of the Russian Federation* — is essentially a unique act”, said Head of FAS Igor Artemiev at the press-conference on 25 January 2018. “We are quite lucky that the founders of Russian Constitution put the competition theme in the basic law and stated that monopolization is prohibited. Thus, the fundamental principles were laid down at the supreme level”.
According to Head of FAS, the Plan established the priorities and goals of developing competition. To implement the National Competition Development Plan in 2018 more than dozen laws should be drafted.
Among them those changes to the law outstand that restrict establishing unitary enterprises on competitive markets and prohibit acquiring shares and stock of companies operating in competitive conditions by the state and municipalities.
“Often state and municipal unitary enterprises occupy the market where business could develop. The initiatives developed by FAS enable replacing unitary enterprises with representatives of small and medium business. They will be selected through competitive procurement, they will sign high-responsibility contracts, and it will help prevent spreading out of state monopolism in the economy”, addedIgor Artemiev. “Federal and regional authorities are also responsible for development of competition. They are prohibited to create discriminatory conditions for business.”
The next block of draft laws concern tariff regulation. The amendments will phase-out tariff regulation in competitive segments. Also, the comparable market analysis will be introduced in the tariff law as a priority and long-term (no less than five years) regulatory period, and a unified procedure of pre-trial review of tariff disputes will be formalized.
According to the Order, by 1 July 2018 the Government must approve the plan on transition of particular segments from the state of natural monopoly to a competitive market. In 2018 monopolies will be determined, for which investment programmes will be approved and controlled by the Government.
Another special aspect of implementing the Order is the Sectoral Competition Development Plans. These Plans will contain the lists of key indicators and expected results.
*No. 618 Order of the President of the Russian Federation "Оn the main areas of the state policy on developing competition" of 21.12.2017