FAS ISSUED A WARNING TO THE GOVERNMENT OF THE OREL REGION

10-04-2019 | 14:36

FAS found elements of violating the antimonopoly law in the actions for granting subsidies to agricultural producers

 

The Government of the Orel region approved the Subsidies Procedure [1], aimed at increasing productivity in the dairy cattle-breeding.

 

According to the Procedure, the annual subsidies allocated to this purpose form the federal and regional budgets are grants in full to agricultural producers twice a year for the accounting periods of Q1 and Q2 of the current year.

 

In FAS opinion, the Subsidies Procedure creates discriminatory conditions for particular agricultural producers in the Orel region that could not claim subsidies in the period of granting them under the current law due retractions imposed because of cattle leucosis. In the subsequent periods of the same year, however, these agricultural producers may have the right for obtaining the subsidy, which puts them in unequal economic conditions for their operations in comparison with the producers that obtained subsidies.

 

The antimonopoly body finds that actions of the Orel Regional Government contain signs of violating the Law “On Protection of Competition” [2].

 

FAS issued a warning to the Orel Regional Government to stop such actions by amending the Subsidies Procedure accordingly: agricultural producers should be able to get subsidies for the milk actually sold and (or) shipped for own processing throughout the entire period of the current (relevant) year.

 

[1] No. 52 Decree of the Orel Regional Government of 25.02.2013

[2] Clause 8 Part 1 Article 15

 



Site Map

News & Events Press Releases Media Releases Image Library About the FAS Russia What We Do General Information Mission, Goals, Values Priority Setting Institutional Memory Stakeholders Engagement Center for Education and Methodics Our History Our Structure Powers of Head and Deputy Heads Our Ratings GCR Using our website International Cooperation Treaties & Agreements International Working Groups Working Group on Research of Competition Issues in the Market of International Telecommunications (Roaming) Meetings Working Group for Studying Competition Problems in the Pharmaceutical Sector Concept Note Meetings OECD Competition Committee OECD meetings 2013 OECD meetings 2014 OECD meetings 2015 OECD meetings 2016 OECD meetings 2017 OECD meetings 2018 FAS Annual Reports OECD-GVH RCC RCC Newsletter ICAP Council on Advertising Headquarters for Joint Investigations UNCTAD 13th session IGE UNCTAD Resolution Russian contributions 14th session IGE UNCTAD Resolution Russian contributions 15th session IGE UNCTAD 16th session IGE UNCTAD 17th session IGE UNCTAD EEU Model Law on Competition ICN BRICS WG (Markets of Social Importance) EU APEC Competition Policy and Law Group Annual meetings Projects ERRA Full Members Organizational Structure Archive Working Group on Investigating Issues on Pricing in the Oil and Oil Product Markets and Methods of their Functioning Meetings Document Library Legislation Reports & Analytics Cases & decisions Contacts Give feedback Contact us Links Authorities Worldwide