GOVERNMENT APPROVED INTER-DEPARTMENT PROGRAMME FOR EXPOSING AND SUPPRESSING CARTELS

Programme is drafted by FAS to execute the Presidential order to establish efficient and unified practice to counter these economic crimes

As specified in Order of the President of the Russian Federation No. 208 “On the Economic Security Strategy of the Russian Federation until 2030” dated May 13, 2017 anticompetitive agreements are recognized as one of the threats to economic security.

A growth of cartels, their penetration in strategic and vital areas of the state activities that form the backbone of national security, requires adequate measures.

2019 – 2023 interdepartment programme for exposing and suppressing cartels and other competition-restricting agreements is designed to consolidate efforts and resources of the authorities to defend the national interests of the Russian Federation and create unified practice for preventing cartels and anticompetitive agreements.

According to Head of FAS Igor Artemiev, “achieving the Programme goals will form the working practice to counter cartels and anticompetitive agreements that will increase economic efficiency and competitiveness, growth and development of national economy”.

The Programme provides for improving the law of the Russian Federation, exposing and eliminating factors of cartelization of the economy by combining the efforts of all government and law enforcement bodies.

The Programme also requires additional professional training of staff on exposing and suppressing anticompetitive agreements and studying international experience.

Igor Artemiev emphasized: “The Programme does not contain excessive regulatory measures from public bodies: all measures involve joint efforts of different bodies only within the scope of their authority”.

Statistical data:

• In 2018, the FAS Russia opened 384 antimonopoly cases on breaching Article 11 of the Federal Law “On Protection of Competition”, of which over 85% cartel cases. 283 bid-rigging collusions are exposed.
• The number of cartels increased by 8%. The public danger of anticompetitive agreements, where public servants are involved, is very high since they harm not only free competition but also the interests of public service.
• Cartels have signs of organized criminal groups or criminal communities. They are most widespread in road and hospital construction, catching aquatic biological resources, supplies of medicinal drugs and medical equipment, supplying food products to the population.
• Around 30 trillion RUB are allocated from the budget for public procurement and procurement by companies with state participation. Due to absence of actual competition at auctions and tenders, increased budgetary spending is the main adverse consequence of bid-rigging collusions
• Overrated prices in case of bid-rigging cartels reach 30% (from the initial value of the  subjects of tenders / auctions)
• As experts estimate, the damage from anticompetitive agreements on markets and auctions / tenders reaches 1.5 – 2% of GDP annually