FAS: UNIFICATION OF BIDDING PROCEDURES WILL IMPROVE THEIR EFFICIENCY

Stated Gennady Magazinov, Deputy Head of FAS Russia, during the X St. Petersburg International Legal Forum

At the moment, the rules for conducting "industry" auctions regulate more than 50 legal acts – Land, Water, Forestry, Urban Planning Codes, as well as a number of federal laws. The variety of auctions and procedures complicates the bidding process, leads to a low level of competition at auctions and a shortage of funds in budgets of all levels. In addition, most regulatory acts do not provide for bidding in electronic form.

In order to optimize bidding procedures and eliminate differences in approaches to regulating this area, FAS Russia has developed a draft law*, which provides for bidding according to the unified rules based on the antimonopoly legislation.

The concept of unification of industry trades proposed by the bill includes two stages. The first is the introduction of system – forming norms on uniform rules of bidding in the Law on Protection of Competition. The second is the establishment of the bidding procedure by an act of the Government of the Russian Federation. The industry specifics of conducting certain types of bidding (the subject, the initial bidding price, the procedure for forming lots) will continue to be regulated by industry legislation.

The bill was submitted to the Government of the Russian Federation in June. It is expected that the document will enter into force on September 1, 2023.

For reference:

*Draft Federal Law "On Amendments to the Federal Law "On Protection of Competition" and Certain Legislative Acts of the Russian Federation".