OREANDA-NEWS. On July 06, 2009 the Stavropol Regional Arbitration Court dismissed the claim of the Pyatigorsk Town Duma for invalidating the decision and determination issued by the Office of the Federal Antimonopoly Service in the Stavropol region (OFAS Russia), reported the press-centre of FAS Russia.

Investigating the Pyatigorsk Town Duma and the Administration, the Stavropol OFAS Russia established that contrary to the antimonopoly legislation that forbids anticompetitive actions of the authorities and creating advantages to individual organisations, the Pyatigorsk Town Duma adopted the Regulations on Granting Credits to legal Entities from the local Budget. The Regulations provide for granting credits upon applications from particular legal persons rather that on a competitive basis, which contradicts Articles 19 and 20 of the Federal Law "On Protection of Competition".

The Stavropol OFAS Russia found that the Pyatigorsk Town Duma violated the Federal Law "On Protection of Competition" and issued a determination requesting to eliminate the violation by bringing No. 177-25 GD Decision of the Pyatigorsk Town Duma of 27th December 2007, which approved the Regulations, in compliance with the Federal Law "On Protection of Competition". OFAS Russia's determination also requested Duma to avoid anticompetitive actions in granting budgetary loans.

The Stavropol Regional Arbitration Court confirmed validity of the decision and determination issued by the Stavropol OFAS Russia regarding the Pyatigorsk Town Duma.