The Government of the Perm region unlawfully disposed of state property within competitive procedures

FAS found that the Government of the Perm regionviolated Part 1 Article 15 of the Federal Law “On Protection of Competition” due to the orders on alienating state property without competitive procedures (No. 207-rp of 30.06.2015 and No.303-rp of 16.09.2015).

The case was opened upon failure by the Government of the Perm regionto execute FAS warning to stopactions that have elements of violating the antimonopoly law: orders to increase the authorized capital of the “Perm Pig Breeding Farm” JSC by issuing additional ordinary registered uncertified shares by private subscription in favour of the “Sinergia Group” JSC without competitive procedures (tenders, auctions).

Since 100% voting shares of “Perm Pig Breeding Farm” JSC are in state property of the Perm region, state property must be alienated in line with the Federal Law “On privatizing state and municipal property”.

Under Article 13 of the Law on Privatization, shares of share-holding companies are sold at special auctions. Therefore, competitive procedures, implying competitiveness of economic entities are necessary, because those potentially wishing to obtain goods, works, and services, access to a relevant goods market or the right of operation on it can be identified only through public announcements of such procedures.

The property and shares of the “Perm Pig Breeding Farm” JSC were not included in 2013-2015 Forecast Plan for privatization of the state property in the Perm region, which is also required under the Law on Privatization.

Part 1 Article 15 of the Federal Law “On Protection of Competition” prohibits federal executive bodies to pass acts and (or) exercise actions (omissions) that lead or can lead to preventing, restricting, eliminating competition, except cases of passing acts and (or) exercising such actions (omissions) specified in the federal laws.