GOVERNOR OF THE SMOLENSK REGION: FOR THE REGION ESSENTIAL TO WORK IN A SOLID TEAM

An interview of Governor of the Smolensk region, Alexei Ostrovsky on executing the National Competition Development Plan in the region

- The National Competition Development Plan was approved at the end of 2017. Four years later its interim results can be summed up. Please tell which targets are already achieved in the Smolensk region?

- Active competition support is a priority to the Smolensk Regional Authority. We have done a lot in this area, all main orders and instruction regarding fulfillment of the National Plan and the Order issued in follow-up of the State Council on competition development are executed. At the same time, several days ago, [on 8 October] 2019-2022 Road Map for developing competition in the Smolensk region is approved; it was drafted in view of the changes to the Federal Competition Development Standard. The Road Map comprises measures designed to support competition on 33 markets in the region as well as systemic measures encouraging development of a competitive environment in Smolensk. Plus the Road Map will be reviewed taken into account recent FAS comments and proposals.

- What is the percentage for reducing violations by the authorities in the region in comparison with the previous year?

- This year, violations of the Federal Law “On Protection of Competition” by the regional authorities dropped down compared to 2017. For instance, 15 facts of antimonopoly violations were registered in contrast to 9 violations in the nine months of 2019.

- What is the percentage of increase of state and municipal contracts with small business?

- Since 2017, the Smolensk region uses unified methods for increasing the share of contracts with small companies. It was devised by the Main Department for the Smolensk region on regulating the contractual system. As a result, contracts with small business increased by 27.5% in 2018 compared with a similar indicator in 2017 года (from 6 281 in 2017 to 8 010 in 2018), and the costs of contacts also increased – by 44.2% (from 2 billion 506 million RUB in 2017 to 3 billion 615 million RUB in 2018).

- How did you manage to decrease the number of unitary enterprises? Which measures were undertaken?

Smolensk Regional Authority is guided by the principles determined in the Order of the President of Russia “On the main directions of the state policy towards competition development”. To pursue the fundamental principle on decreasing the share of economic entities, founded or controlled by the state or municipalities, in the total number of economic entities operating on the markets. Smolensk Regional Authority undertakes consistent efforts to decrease the number of state unitary enterprises. On 1 January 2019 there were 34 regional state unitary enterprises, and as of 11 October the number of regional state unitary enterprises decreased to 16.

- In your opinion, how successful are measures for drafting and implementing antimonopoly compliance?

- Executive bodies in the Smolensk region have devised and introduced antimonopoly compliance systems to prevent violations of the antimonopoly law. The main objectives of antimonopoly compliance are to make sure that actions of the authorities conform to the norms of the competition law, and to prevent and decrease violations of the antimonopoly rules.

In this context we hope that implementing antimonopoly compliance will help further reduce violations of the Federal Law “On Protection of Competition” by the regional authorities.

- What positive Smolensk experience can you share with other regions?

As a positive practice, I should mention experience of Smolensk Regional Authority in interacting with local municipalities in order to develop competition. Agreements on Cooperation in the field of implementing the Competition Development Standard are concluded with all municipalities in the Smolensk region. Now the Agreements are renewed till 2022 in view of the changes to the Federal Standard.

Practice has shown that implementing the Competition Development Standard, the most essential is to build up efficient collaboration between all parties involved in the measures designed to support competition in the region.

Efficient communications help promptly resolve any issues and react dynamically to the changes in the market environment, and take into consideration the interests of all stakeholders in order to develop competition in the region and create favourable conditions for doing business in Smolensk.

An annual ranking of the work of municipalities in the Smolensk region towards competition development is compiled; and municipalities that achieve the best results in this field are awarded special Diplomas. We issued recommendations to Heads of the local self-government bodies in municipalities to take into account the ranking when making decisions to stimulate the staff responsible for the competition support measures in municipalities.

- Your assessment of the work of Smolensk OFAS?

Positive. Smolensk Regional Authority closely cooperates with the regional office of the Federal Antimonopoly Service. Representatives of Smolensk OFAS take part on a regular basis in Councils, Working Groups, meetings, project offices organized by Smolensk Regional Authority, which has a positive effect upon the issues associated with creating favourable business-climate in the Smolensk region and pro-competitive practices in the region.

The draft regional Road Map was prepared jointly with Smolensk OFAS, a series of trainings with representatives of municipalities was conducted to better fulfill theNational Competition Development Plan.

We have built up close and constructive cooperation with Smolensk OFAS on all aspects of competition development. I believe such cooperation can bring only benefits in any region, and we value very much the readiness of our colleagues for a dialogue.

- Briefly describe your plans on further cooperation with FAS, wishes, aspirations – what are we aiming at, what kind of outcome intend to achieve?

Smolensk Regional Authority will continue close and constructive collaboration with the Central FAS Office and the regional OFAS Office because it is essential for the region to work in a tight-neat team.

FAS has accumulated immense experience and competences necessary to achieve the set by the president and the Government of the Russian Federation in the field of competition development.

For more productive work in the course of executing the New Competition Development Standard, we’d like perhaps to recommend the Federal Antimonopoly Service to organize, through FAS regional Offices, monitoring of the state and progress in competition development on the markets that regions choose for competition advancement.

The main areas of cooperation for the years immediately ahead include fulfillment of the National Competition Development Plan and the renewed Competition Development Standard. They are aimed at increasing the share of private sector in the socially important sectors, improving the openness of executive bodies and decreasing administrative barriers for small businesses.

We also plan specialized events and working consultations to exchange experience and the best practices of other regions of Russia.