OREANDA-NEWS. July 08, 2009. The Saratov Office of the Federal Antimonopoly Service (OFAS Russia) found that the Saratov Regional "Passenger Transportation Department" State Autonomous Institution ("Passenger Transportation Department" GAU) violated Parts 1 and 3 Article 15 of the Federal Law "On Protection of Competition", reported the press-centre of FAS Russia.

OFAS Russia discovered that in January 2009 "Passenger Transportation Department" GAU concluded a contract with "Balakovsky Passazhirsky Avtokombinat" OJSC "for organising transportation of citizens with allowances in Saratov region and compensating the losses for transporting citizens with allowances". "Passenger Transportation Department" GAU assigned responsibilities of a carriers-compensating body to an independent economic entity ("Balakovsky Passazhirsky Avtokombinat" OJSC), which violated the antimonopoly legislation.

At the same time, under No.122-P Decree of the Government of the Saratov region of 7th April 2009, the losses to the carriers from transporting passengers with monthly and single social travel passes must be compensated by a state agency.

Having investigated the case, the Saratov OFAS Russia issued a determination to "Passenger Transportation Department" GAU about exercising actions aimed at protection of competition:

1. Terminate the contract with "Balakovsky Passazhirsky Avtokombinat" OJSC for transportation of citizens with allowances.

2. Enter into contracts with the carriers involved in transportation of citizens with allowances in Balakovo Municipal District abd Balakovo municipality in accordance with No.122-P Decree of the Government of the Saratov region of 7th April 2009.

Reference:
Parts 1 and 3 Article 15 of the Federal Law "On Protection of Competition" prohibit the federal executive bodies, executive bodies of the constituent territories of the Russian Federation, and local self-government bodies to pass acts and (or) exercise actions (lack of action), that result or can result in preventing restricting or eliminating competition, except when passing such acts and (or) exercising such actions (lack of action) is provided for by the federal laws).

It is forbidden to combine functions of the federal executive bodies, executive bodies of the constituent territories of the Russian Federation, other authorities, and local self-government bodies with the functions of economic entities, or assign the rights and functions of the above bodies to economic entities.