OREANDA-NEWS. December 07, 2009. The Federal Antimonopoly Service (FAS Russia) initiated an antimonopoly case against the Moscow Regional Legislature (Duma) for granting unjustified rent charges privileges to some economic entities using plots of land, reported the press-centre of FAS Russia.

FAS Russia received a petition from the Entrepreneurial Society of the Odintsovo District, Moscow Region. Businessmen complained about unjustified and unreasonable expenses for rent, caused by using an overrated multiplier.

The high rent rate especially affected small companies that were forced to considerably increase their production costs, which resulted in increasing prices for the goods and services offered by them.

Under Part 4 Article 14 of No. 23/96-ОZ Law of the Moscow Region of 7th July 1996 "On Regulating Land Relations in the Moscow Region", the multiplier is not applicable to unitary enterprises. This certainly puts them in preferential conditions in comparison to other economic entities exercising similar activities; in particular, with the entrepreneurs from the Odintsovo District, who complained to FAS Russia.

According to Rachik Petrosyan, the Head of the FAS Russia's Department for Housing & Utilities, Construction and Natural Resources, applying the multiplier factor = 3 for calculating the rent for small companies in the Moscow region certainly infringes their rights in the market. Especially because at the same time the local authorities fixed a multiplier that is lower by several factors for some municipal enterprises of the Moscow region. Grating such privileges to individual economic entities can lead to restriction of competition.

The case will be heard on 23rd December 2009.