ST PETERSBURG OFAS: MEMBERS OF CARTEL FOR CATERING AT SCHOOLS, DAY-CARE CENTRES AND MEDICAL FACILITIES CAN GET UP TO 6 YEARS IMPRISONMENT

Materials prepared by the Cartel Department of St Petersburg OFAS formed the basis for an investigation and inspections by the Federal Security Service

As established by the antimonopoly body, several companies in St Petersburg divided between themselves the markets of supplying food products and organizing catering at schools, pre-school day-care centres and medical facilities in Kolpino District of Petersburg. Forming a cartel and obeying the orders from a single coordinator, the companies closed market entry for other participants. The revenue of the companies exceeded 450 million RUB. The Main Investigation Department of the Ministry of Interior opened a criminal case against the companies under Article 178 of the Criminal Code of the Russian Federation based on the materials supplied by St Petersburg OFAS.

“The cartel members face up to 6 years of imprisonment for breaching the antimonopoly law. Russia rarely applies Article 178 of the Criminal Code and cases that reaches Courts and ruling are passed are next to nothing”, said Head of St Petersburg OFAS, Vadim Vladimirov at a special press-conference on cartelization of Petersburg Social Catering Market.  “We are not blood-thirsty, but hopefully the case against Kolpino cartel will reach Court and will be established there. This precedent and its comprehensive coverage in mass media will stop potential cartels that are only planning to collusions that can harm St Petersburg economy”.

Cartels are widespread on the markets of food supply to social facilities. Only at the end of 2018 of St Petersburg OFAS exposed two cartels for catering at social facilities. St Petersburg OFAS has opened and is investigating administrative cases against the violators.

Head of FAS Anti-Cartel Department Andrey Tenishev emphasized: “Every year the antimonopoly body opens around 400 cases upon signs of cartels. The total amount of fines varies between 2 to 4 billion Rub annually. Cartel is a latent crime and FAS is in close collaboration with the law enforcement bodies on such cases”.