INTERMEDIARY RESULTS OF THE NATIONAL COMPETITION DEVELOPMENT PLAN

FAS summed up the intermediary results of pursuing the measures included in the National Competition Development Plan and the orders issued following the State Council on Developing Competition of 5 April 2018

So far, the outcome of implementing the National Competition Development Plan¹  includes presence of minimum three economic entities in all sectors of the economy, at least one of which is a private company.

In 2018 the number of violations of the antimonopoly law by the authorities and local self-government bodies reduced by 14% to 3192 violations in comparison with 2017.

According to the preliminary data of the Russian Ministry of Finances, contracts by small and medium business and socially oriented NGOs concluded under No. 44-FZ Federal Law reached 29.7% in 2018 in monetary terms (the target for 2020 is 31%), which equals 2 trillion RUB. Last year the figure was 974.5 billion RUB or1 5.4%.

Procurement from small and medium business under No. 223-FZ Federal Law accounted for 2 trillion RUB in monetary terms or 12% (the target for 2020 is 18%).

Pursuing the measures outlined in the National Plan, the authorities approved the Rules for non-discriminatory access to the services of natural monopolies in ports³, the Rules for non-discriminatory access to the market of publically available postal service⁴; the amendments to No. 223-FZ Federal Law came into effect establishing an exhaustive list of methods for procurement of services from small and medium business, as well as the procurement format and the requirements for description of procured items.

The Government of the Russian Federation⁵ approved the Guidelines for establishing and organizing an antimonopoly compliance system by the authorities. So far, 14 federal executive bodies have implemented risk prevention system for antimonopoly violations.

The RF Ministry of Labour passed an order approving a professional standard – “Competition Law Specialist”, while following an order of Russian Ministry of Education and Science included “Competition Law” specialization in the list of academic specializations, where academic degrees are awarded.

The Government is currently considering draft laws on reforming natural monopolies, the fundamental principles of state regulation of prices (tariffs), forced licensing, and antimonopoly compliance. The draft law on reorganizing unitary enterprises has passed the first reading in the State Duma.

To execute the list of orders issued by the President based on the State Council’s outcome⁶, all regions of Russia have devised and coordinated with FAS the key targets for developing competition by sectors of the regional economy, that are expected to be achieved by 2022.

Road Maps on developing are being refined. They comprise systemic efforts designed to improve the competitive environment in the regions and achieve the key targets set by regions.

To achieve the above goals, FAS has devised a method⁷ to estimate the key targets.

Regional executive bodies are completing the work on implementing systems of antimonopoly compliance.

References:

¹  No. 618 Order of the President of the Russian Federation “On the main directions of the state policy for developing competition” of 21.12.2017 approved 2018-2020 National Competition Development Plan.

² Except natural monopolies and the defence industry complex

³  No. 1285 Decree of the Government of the Russian Federation of 20.10.2017.

⁴  No. 1640 Decree of the Government of the Russian Federation of 22.12.2018.

⁵  No.2258-r Order of the Government of the Russian Federation of 18.10.2018.

⁶  No. Pr-817GS List of Orders of the President of the Russian Federation of 15.05.2018 issued following the State Council of the Russian Federation on 5 April 2018.

⁷  No. 1232/18 FAS Order of 29.08.2018.