SEGRGEY PUZYREVSKY: THE DISCUSSION OF CONCEPT OF A NEW COMPETITION DEVELOPMENT PLAN

The main message of a new strategic document is decreasing state participation in the economy

On 8 October 2019, FAS Scientific-and-Methodological Council and the Commission on Competition Law and Antimonopoly Regulation of the Russian Lawyers Association jointly discussed the interim results and new objectives of the sate policy towards competition development.

In the introductory remarks Deputy Head of FAS Sergey Puzyrevsky outlined the key FAS legislative initiatives comprising introduction of antimonopoly compliance,  the law on the fundamental principles of state regulation of prices and tariffs,  the law on reforming natural monopolies, the fifth antimonopoly package,  and other legislative initiatives.

Oksana Kuznetsova, Deputy Head of FAS Legal Department informed that based on the Report about the state of competition, submitted to the Government, an order was given to draft a new National Plan for Developing Competition in 2021-2025.

“We find it necessary to put an emphasis on the key indicators for competition development on the markets. The National Plan will still include federal and regional-level measures. The list of sectors covered by the Pal will be expanded. The key targets by 2025 include: decreasing the level of economic concentration, reducing the share of state and municipal companies on competitive markets, increasing the share of proceeds of small and medium business in GDP”, pointed out Oksana Kuznetsova.

She added that “the main message concerns reducing the share of state participation in the economy, supporting the goals and objectives for developing competition on the markets and mainstreaming the Road Maps at the municipal level”.

Head of FAS Legal Department Artem Molchanov emphasized the importance of jointly discussing the draft:

“It was the first public discussion of the draft, and the goal-setting and targeting are the key elements. The current National Plan looks at the qualitative aspects of private property on the markets. The new National Plan must become a transition to a new level of competition development and help achieve qualitative targets”.

“Absence of private property and private economic entities does not create opportunities for developing competition and even its emergence. This stage must be taken into account and achieved. The level of economic concentration must be the key target”.

“The current measures with regard of small and medium business are insufficient, and proposals to be put forwards should be revolutionary”.

Summing up the outcome of the discussion, Deputy Head of FAS Sergey Puzyrevsky said:

“Feedback is needed. The discussion was just a preparation to the first reading of the draft National Plan. The suggested proposals require additional solutions on goal-setting and the key targets, on a set of rule-making measures in close cooperation with the business community and the authorities. As a result, we will form a cumulative set of measures and move forward”.

Next, the participants discussed the results of working with regions on the Competition Development Road Maps.

“The recommended Road Map on developing competition has been drafted by FAS and includes a list of system-wide measures as well as measures to be undertaken on the markets. We took the best regional practices as the basis. We have already visited half of the regions organizing the work on the Road Maps, 11 more visits are scheduled in November. So far, FAS has received more than 40 draft Road Maps, 9 of which are already approved”, commented Oksana Kuznetsova.

Sergey Puzyrevsky concluded: “The outcome of executing the Presidential Order will depend on the Road Map quality. An approximate Road Map on developing competition is our methodological aid to the regions that contains analysis of the best practices. It should be “alive”, register and translate emergence of everything new to the regions”.

Artem Molchanov also informed about launching the work on 2019 Report on the state of competition in the Russian Federation.