ANTIMONOPOLY COMPLIANCE IN THE PRACTICE OF THE LEADING RUSSIAN COMPANIES

A branch of FAS Centre for Education and Methodicsheld a result-oriented workshop for “EvroChim”

On 27 July 2018,a branch of FAS Centre for Education and Methodics (Moscow) held a result-oriented workshop “Antimonopoly compliance in the system of corporate management and in-house control” for top-executives and specialists of “EvroChim” – a Russian agro-chemical company operating on the global market.

Opening the event, Director of the branch of FAS Centre for Education and Methodics (Moscow) Evgeny Utkin emphasized that the workshop is part of a programme for competition advocacy and prevention of antimonopoly violations. FAS Centre for Education and Methodics is convinced that devising and implementing antimonopoly compliance will encourage decrease of antimonopoly violations. Shortly before the event, it was shown at a conference on “Antimonopoly compliance in Russia: the main things on the threshold of a new emerging institution”, organized by the Centre for Education and Methodics with FAS support.

Head of FAS Legal Department Artem Molchanov showed that creating the institute of antimonopoly compliance – an in-house system for preventing antimonopoly violations – is an important element of  the state policy towards developing competition. It is reflected in No. 618 Presidential Order “On the fundamental directions of the state policy towards developing competition” of 21.12.2017 and 2018-2020 National Competition Development Plan. Relevant amendment will be made to the Federal Law “On Protection of Competition” and the Code on Administrative Violations, to stimulate implementation of compliance-systems; it concerns both economic entities and pubic and municipal bodies.

Alleviating liability for violations in case of an implemented antimonopoly-compliance is controversial. International experience shows that such practice exists and it facilitates risk-oriented approach in corporate management, creates a system for preventing violations. As assured by Artem Molchanov, simply signing papers on observing the antimonopoly law, without implementing the system, without training specialists, will not be successful in terms of punishment mitigation.

The methodology for drafting and implementing compliance-systems, including the required corporate decisions, policies and programmes, and overall compliance-function organization. For the basis of a presentation by Larisa Pak, Head of R&D and expert works at a branch of FAS Centre for Education and Methodics (Moscow). Having considerable experience of working for international companies, she outlined practical recommendations at the stage of implementing and monitoring compliance system.

Alexander Kornienko, Head of Special Investigations Unit, FAS Anti-Cartel Department used examples of special violations to underline the necessary control procedures by top-executives and specialists, potential organizational changes, that will take place with implementing compliance system.

With the help of experts from the branch of FAS Centre for Education and Methodics, participants projected an enlarged risk map for “EvroChem” in view of Russian law and international practice.

Summing up the results, Director on Legal Affairs, “EvroChem” Valery Sidnev mentioned: “The past workshop was very useful for representatives of regional Offices, got together in FAS. For the first time, antimonopoly compliance in corporate management and in-house control system is explained in such a detailed and diverse manner, clarifications are given on document drafting, practical recommendations from regulator, which, undoubtedly, have a positive effect upon the quality of our further work”.