FAS: IT IS NECESSARY TO DEVELOP RESPONSIBLE PRICE BEHAVIOR IN COMMODITY MARKETS

Maxim Shaskolsky, Head of the FAS Russia, spoke about this at the VII International Scientific and Practical Conference "Antimonopoly regulation of pricing in commodity markets of the Russian Federation"

Following the Government's measures to reduce the administrative burden on business, the effectiveness of "soft" regulation tools is increasing in the food market today. Regional authorities and economic entities have the opportunity, if necessary, to conclude agreements with market participants on price restraint for socially important goods. Thus, the resolution developed by the FAS Russia* allowed the regional authorities to conclude an agreement to stabilize the prices of chicken eggs.

In total, by the end of January 2024, more than 2,000 price agreements were concluded in 18 subjects of the Russian Federation.

According to the FAS Russia, when pricing, companies need to rely on the economic validity of prices in the domestic market, and not on the export component.

In order to control commodity markets, it is also important to develop exchange trading and the formation of national exchange indicators. The key event in this area is the adoption of the roadmap for the development of organized trade for 2023-2025. The action plan allows to create an independent market pricing system and domestic indicators.

Currently, exchange-traded and over-the-counter price indicators for important goods are already being formed. These are automobile fuel, wheat, coal, sugar, sunflower oil, etc. The Service continues to supplement the list of goods for which over-the-counter contracts are registered.

During his speech, Maxim Shaskolsky spoke about the ongoing work in the communications and building materials markets, as well as about the results achieved.

One of the important blocks of the Authority`s work is combating cartels. The share of cartels at auctions accounts for more than 90 % of all violations detected by the FAS Russia related to the conclusion of agreements restricting competition. Violations are most often found in the construction and road industries, housing and communal services, as well as in the supply of medicines and social nutrition. In 2023, anti-competitive agreements were found, including in the implementation of a number of national projects.

The Authority is also working to improve control over the economic validity of tariffs to reduce the burden on consumers. In 2023, the FAS Russia conducted 14 inspections, which affected 93 organizations, and 46 observations of compliance with mandatory requirements for setting tariffs in regulated areas of activity in respect of 121 enterprises. In addition, the Authority issued 112 orders to eliminate the violations identified.

At the end of his speech, the Head of the Authority noted that the FAS Russia is also working in other areas of development and improvement of regulation.

Reference:

* Resolution of the Government of the Russian Federation No. 662