SENTENCE TO SUPPLIERS OF MEDICAL EQUIPMENT AND MEDICINE IN THE REPUBLIC OF KARELIA

Moscow District Court in St Petersburg brought in a verdict of guilty to three top-executives of suppliers of medical products and pharmaceuticals: they were found guilty of committing an offence under Clause “а” Part 2 Article 178 of the Criminal Code of the Russian Federation

The Court gave a 2.5-year suspended prison sentence to one of the top-executives of the firms - cartel members, and two other accused – 2 years of suspended prison sentence each. All accused are given a 2-year probation period and additionally fined 250 000 RUB each.

The participants of the anticompetitive agreement are also banned from doing business related to turnover of medical equipment and drugs for two years.

The criminal case was opened upon a decision of Karelia antimonopoly body as well as materials obtained in the course of inspections, submitted earlier by Karelia OFAS to the Prosecutor’s Office of the Republic of Karelia and the Investigation Department of the Investigation Committee of the Russian Federation.

Karelia OFAS recognized that actions of commercial firms from St Petersburg – “Medlon” Ltd., “NikaMed” Ltd., “Medlon -DV” Ltd. – were unlawful: the companies restricted competition in the course of auctions for supplying medical equipment and medicine purchased for the needs of healthcare facilities in Karelia in 2014 - 2017.

Judicial proceedings confirmed that the competitors and their top-executives formed a cartel in the course of 94 electronic auctions with the aim of obtaining the right to conclude contracts at the most profitable price.

The government customers at the auctions were more than 20 healthcare facilities in Karelia. The total income gained by the criminal case defendants as a result of their unlawful operations exceeded 73 million RUB.

“The guilty verdict on this criminal case is a result of efficient interaction between the antimonopoly and law enforcement bodies of Karelia. The danger of cartels for national economic security is very high. To prevent damage from this unlawful activity, all of us must constantly strengthen and increase the quality of collaboration, which will make punishment for committing the above unlawful acts inevitable”, emphasized Head of Karelia OFAS, Artur Pryakhin.