11-10-2018 | 09:43

On 27 September 2018, FAS representatives discussed competition in particular regional and municipal markets at All-Russian Research-to-Practice Conference “Competition Development Strategy in Russia: regional experience”


Opening the session, Deputy Head of FAS Sergey Puzyrevskiy described in detail the goals and objectives of developing competition in Russia.


He pointed out: “We do not support the state leaving all segments of the economy because it bears particular social obligations. If, however, only unitary enterprises work on the markets, the costs and debts have an adverse effect upon the budget, which is a direct signal for developing competition on the market and attracting the public sector”.


Under No.618 Presidential Order and instructions issued following the State Council, regions must determine the key markets for developing competition and implement the institution of antimonopoly compliance by the authorities.


FAS has approved the guidelines for calculating the key indicators for developing competition in sectors of regional economy. Sergey Puzyrevsky clarified that under the frame of drafting the guidelines, FAS held meetings with the interested sectoral bodies.


Recommendations are drafted on approving Road Maps, mainstreaming the current and compiling one or several Road Maps by sectors or group of sectors.


“Several regions have already reached good indicators for developing competition on different markets, but it is not the reason to stop. The result should be reinforced. Such measures must be formalized in a Road Map. FAS is considering options for implementing indicators to evaluate changes on successful markets for end users, their satisfaction with the service.  Possibly, budgetary financing of regions will be related and directly proportional to this criterion. We are working on various options for stimulating regions fulfill the plans not just “on paper”, since nobody needs it”, added Deputy Head of FAS.


Head of FAS Department for Regulating the Housing-and-Utility Sector, Alexei Matyukhin, made a report on the key indicators for developing competition in the housing-and-utility sector. He pointed out that the Order specifies indicators, particular figures and deadlines in the housing-and-utility sector that should be achieved.


Attracting small and medium business in the sector will reduce the fee for the services of managing companies. Similarly, not just unitary enterprises can work in environmental improvement.


He emphasized: “Unitary enterprises have colossal debts and they are trying to deal with them by increasing tariffs and obligating the population to pay for them. A law is drafted on prohibiting establishing state and municipal enterprises. By 2020 they should be liquidated; exceptions are allowed only in the field of defence and security. The draft law is submitted to the State Duma”.


Head of Saratov OFAS, Lyudmila Borisova highlighted not-obvious difficulties that can be faced on the markets of municipal and inter-municipal transportation that sometimes require interaction between the antimonopoly authority and the law enforcement bodies.


Speaking at the Section on “Compliance by the authorities. The main violations and risks of the authorities”, Head of FAS Legal Department Artem Molchanov pointed out that often violations of the antimonopoly law by the authorities are not typical for other states and economies.


He said: “For example, Sweden does not have any single such case against the authorities. While in Russia in 2016 issued more than 3400 warnings and opened more than 1300 antimonopoly cases. In 2017 nearly 3000 warnings and 1260 cases”.


“No doubt, implementing the compliance system by the authorities is not a panacea, however, it can become a measure to prevent unintended violations”, concluded Artem Molchanov.

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