OREANDA-NEWS. On July 27, 2009 the Federal Antimonopoly Service (FAS Russia) initiated administrative proceedings against the Government of the Orel region, reported the press-centre of FAS Russia.

Grounds for opening the case and the subject matter of the case: No.8 Decree of the Government of the Orel region of 20th April 2009"On Approving the Procedures for Granting 2009 Subsidies from the Regional Budget to the Budget of Municipal and Town Districts, which Sell Alcohol Products Made Mainly by the Producers from the Orel Region".

The Decree specifies the procedures for granting subsidies to the budgets of municipal and town districts on the basis of estimated sale of alcohol products, made within the Orel region, on consumer markets.

FAS Russia believes that the Decree creates advantageous position for the local producers and sellers of alcohol products, which can upset competition on the market of distribution of alcohol products, and aversely affects producers of alcohol products from other regions supplying their products to the Orel region.

The case will be heard on 28th August 2009.