FAS CONTINUES TO CONTROL THE ACTIVITIES OF GRAIN ELEVATORS

FAS Russia supervises observance of the Antimonopoly legislation when contracts on grain storage are concluded

A letter of the FAS Russia was sent to 20 Regional Offices of the agency.

The activities of grain elevators are considered for monopolistic price-fixing of the services provided, imposing unfavorable conditions that are not related to the scope of the contract, unjustifiably setting tariffs, as well as creating discriminatory conditions when concluding grain storage agreements with organizations that purchase grain from the intervention fund.

The Federal Antimonopoly service of Russia has previously sent a reminder to the custodians of the Federal intervention fund for agricultural products about the need to comply with the antimonopoly law when concluding storage agreements with the winners of grain auctions.

After the involvement of the FAS Russia and the prosecutorial bodies, tariffs for storage and shipment of grain were reduced by JSC "Nazyvaevsky Elevator" in the Omsk region, LLC "Yershovsky Elevator" in the Saratov region, JSC "Chanovsky Elevator" and JSC "Chistoozernoe cereal reception enterprise" in the Novosibirsk region, JSC " Grain Storage No. 67" and JSC "Rayevsky Grain Elevator" in the Republic of Bashkortostan. Rostov Regional Office of the FAS Russia initiated a case on the grounds of violation of the Law on Protection of Competition in respect of LLC "Millerovozernoprodukt".

"In the context of combating the COVID-19 pandemic, we cannot allow an unjustified increase in prices for grain elevator services. Unfair behavior of some market participants threatens the implementation of measures taken by the Government of the Russian Federation to implement the state agricultural policy. The desire of grain elevators to obtain unjustified benefits by raising tariffs may lead to an increase in prices for final products and, as a result, neutralizes the very essence of conducting commodity interventions," said Pavel Zaborschikov, Deputy Head of the FAS Russia.

"Public procurement interventions are carried out in order to stabilize prices in the market. Under the circumstances, the high prices along with the imposition of unfavorable terms at the conclusion of contracts for storage of grain of the  intervention fund with winners of tenders are  absolutely unacceptable, therefore in detection of violations the response should be immediately applied by competition authorities," - noted the acting Head of the Department for Control over Agro-Industrial Complex of the FAS Russia Larisa Vovkivskaya.

Background:

The letter of the FAS Russia was sent to Volgograd Regional Office of the FAS Russia, Omsk Regional Office of the FAS Russia, Stavropol Regional Office of the FAS Russia, Kurgan Regional Office of the FAS Russia, Rostov Regional Office of the FAS Russia, Saratov Regional Office of the FAS Russia, Ulyanovsk Regional Office of the FAS Russia, Orenburg Regional Office of the FAS Russia, Samara Regional Office of the FAS Russia, Tyumen Regional Office of the FAS Russia, Kemerovo Regional Office of the FAS Russia, Altai Regional Office of the FAS Russia, Krasnoyarsk Regional Office of the FAS Russia, Bashkortostan Regional Office of the FAS Russia, Novosibirsk Regional Office of the FAS Russia, Nizhny Novgorod Regional Office of the FAS Russia, Chelyabinsk Regional Office of the FAS Russia, Moscow Regional Office of the FAS Russia, Mordovia Regional Office of the FAS Russia, Irkutsk Regional Office of the FAS Russia.