HOUSING AND UTILITIES FACILITIES OF STATE-OWNED COMPANIES AND UNITARY ENTERPRISES WILL BE AVAILABLE AT AUCTION

Government of the Russian Federation approved the draft law on the development of competition in the utility sector prepared by FAS Russia

The amendments provide for changes in the Law on Protection of Competition and the Law on Privatization. They are aimed at ensuring non-discriminatory access to state and municipal property in the housing and public utilities sector.

The first part of the changes relates to companies if their share of state participation is more than 50%. They will have to conduct auctions when making transactions with public sector facilities, since they are under the control of the state or municipal entity. This will ensure transparency and publicity of competitive procedures.

The second part of the amendments affects the activities of state and municipal enterprises. Currently, there is a situation when a state unitary enterprise or a municipal unitary enterprise alienates a housing and public utilities facility to a specific person without conducting competitive procedures and without obligations to modernize heating mains and water pipes. Amendments to the legislation will make it mandatory to sell such objects at auction and direct additional investments in the industry.