OREANDA-NEWS. On July 15, 2009 the State Duma of the Russian Federation unanimously approved the draft federal law "On Introducing Amendments to Article 178 of the Criminal Code of the Russian Federation", devised by the Federal Antimonopoly Service (FAS Russia) jointly with the Russian Ministry of Interior and the Russian Ministry of Economic Development, reported the press-centre of FAS.

The new version of Article 178 of the Criminal Code of the Russian Federation is one of the major initiatives of the "second antimonopoly package", unanimously approved by the Federation Council of the Federal Assembly of the Russian Federation on 7th July 2009.

According to Igor Artemyev, the Head of the Federal Antimonopoly Service (FAS Russia), "the approved amendments will help us investigate cartel collusions, suppress abuses of dominant position and fight against unlawful preferences granted by the authorities to individual companies".

FAS Russia devised the draft federal law in order to implement the principle of inevitability of punishment for socially dangerous violations of the antimonopoly legislation, and ensure realistic possibilities for enforcement of Article 178 by the law enforcement bodies.

The draft law provided for criminal liability for preventing, restricting or eliminating competition by entering into competition-restricting agrements or engaging in competition-restricting concerted actions, repeatedly abusing dominant position by fixing and maintaining monopolistically high or low prices for the goods, unreasonably refusing to sign contracts or evading contracts, or restricting market entry, if such actions have inflicted heavy damage to individuals, organisations or the state or resulted in deriving revenue on a large scale. The draft law defines "heavy damage" as damages exceeding one million Rubles, and "revenue on a large scale" as the revenue exceeding five million Rubles.

Under the Notes to Clause 4 of the new version of Article 178 of the Criminal Code of the Russian Federation, "repeated actions" means that within three years a person exercised more than two such actions for which this person can be made administratively liable.

Criminal sanctions, in form of imprisonment from a year up to seven years, are applicable if preventing, restricting or eliminating competition was accompanied by violence or a threat of violence.

"I believe this sanction will be even more effective than turnover fines", concluded the Head of FAS Russia.