Joint efforts of FAS and law enforcement bodies is a guarantee of efficient cartel combat

In 2017 five cases were opened under Article 178 of the Criminal Code (restricting competition).  Preliminary investigation agencies are working on 7 criminal cases opened upon signs of breaching Article 178.

For example, there is a case against unidentified persons among top executives of “Rostelecom” PJSC, “SpetsEnergoTrade” Ltd., and “TechnoServ А/S” Ltd. and other unidentified commercial organizations. In October 2014 those persons entered into a cartel agreement at an auction for procurement of works to develop a hardware-software suite for automated registration of traffic accidents and use of video-registration means in the Novgorod region.

Another case under investigation is against top executives of “Mir” Managing Company” Ltd. and ‘Vozrozhdenie” that from 13 April 2015 to 5 May 2016, in collusion and complicity with officials from the Vasileostrobsly District Authority, St Petersburg, concluded a cartel agreement, restricting competition, as a result of which they gained income on  an especially large scale - over 687 million RUB.

FAS is also investigating cases against top managers of “Vostok” Ltd., “Dorogi Sibiri” Ltd., “No. 364 DEP” OJSC, No. 363 DEP” OJSC and an individual entrepreneur Oganesyan, who entered into an oral agreement, restricting competition, in 2011 at the auctions for construction and maintenance of  М-54 “Yenisei” highway, as a result of which they gained income exceeding 1.8 billion RUB.

There are also four cases in charge, initiated under Articles 159, 160, 290 of the Criminal Code on crimes related to organizing auctions for procurement of medicinal drags and medical equipment.

As part of cooperation with the law enforcement bodies and in order to expose violations of the antimonopoly law, specialists of FAS Ant-Cartel Department and its regional Offices carry out inspections, and these materials form the grounds to open criminal cases.

FAS specialists take part in joint events organized by the Federal Security Service and the Ministry of Interior to expose and suppress embezzlement of public funds in public procurement.

Reference:

Following a Presidential Order, the 2030 Economic Security Strategy includes a Clause on the “need to improve the mechanism of budgetary planning, control over public and municipal needs, preventing cartels”.

The President of Russia also approved the list of instructions towards exercising priority measures designed to expose and suppress cartels.