FAS: LEASE PAYMENT DEFERRAL IS NOT A VIOLATION OF THE ANTIMONOPOLY LAW DUE TO COVID-19

The Antimonopoly Service has drafted explanations about possibility of additional agreements to lease contacts for public or municipal real estate concluded with small and medium companies on the basis of competitive bidding

In particular, small and medium business can be offered lease payment deferrals. Such deferrals are measures to support businesses due to propagation of the new coronavirus infection COVID-19 (№ 670 Government Order [1]).

In view of the norms of the Civil Code and No.670-p Government Order, FAS informs that additional agreements to contracts with small and medium business for lease of public or municipal real estatethat concern deferrals of lease payments are not violations of the antimonopoly law and do not have elements of breaching Article 15 of the Federal Law “On Protection of Competition”.

Head of FAS Legal Department Artem Molchanov pointed out: “The explanations also mention that such additional agreements cannot be recognized as preferences  because such actions do not apply to particular entities but are used to support all small and medium businesses. It this context, it is impossible to talk about giving advantages to particular economic entities”.

[1] № 670-р Order of the Government of the Russian Federation “On the measures to support small and medium business” of 19.03.2020