OREANDA-NEWS. October 05, 2010. Recently the practice of concluding agreements by unions (associations) in order to coordinate the work of economic entities – members of unions (associations) in terms of fixing or maintaining prices for agro-industry products has become quite widespread, reported the press-centre of FAS Russia.

The Government of the Russian Federation has instructed FAS Russia to study the issue jointly with industry unions and associations and draft the relevant recommendations.

On 29th September 2010, FAS Russia held a meeting of its Expert Council on Agro-Industrial Complex, attended by representatives of all leading unions and associations in agro-industry, the Ministry of Agriculture of the Russian Federation and other interested persons.

Deputy Head of the Expert Council, Mr. Kharitonashvili, told the Council about FAS Russia’s recommendations regarding these agreements, the purpose of which is to prevent antimonopoly violations.

In course of a discussion, the Chairman of the National Union of Milk Producers - A. Danilenko, the Chairman of the Board of the Russian Union of Sugar Producers - A. Bodin, the Executive Director of the Russian Milk Union - V.Labinov, the President of the Russian Guild of Bakers and Confectioners– Yu.Katsnelson, a representative of the Russian Grain Union – A. Rabsky, Vice-President of the Russian Union of Milling and Grits Enterprises – A. Rybakov, a representative of the National Union of Grain Producers – A. Smorodov, and First Vice-President of the Russian Union of Bakers – V. Molodykh informed members of the Expert Council and other attendees about approaches of industry unions and associations to such agreements.

As a result of the discussion, the Council arrived to a consolidated opinion that the main aims of such agreements should be leveling economic environment for participants of related markets by cutting down the costs along the whole production chain.

To elaborate indicative price indexes for the agro-industry markets that participants can use as reference points to plan their production activities, unions (associations) can monitor prices on agro-industry markets on a regular basis and prepare analytical reports. Such reports should include analysis of existing prices and an estimate of indicative base prices for future periods.

At the same time, the agreements should not recommend specific price parameters for agro-industry products to members of unions and associations.

Also draft agreements should not contain provisions aimed at fixing or maintaining prices, dividing markets under geographic principles, volume of sale, range of products, and other provisions that have elements of preventing, restricting or eliminating competition.

Summing up the discussion, the Expert Council authorized FAS Russia to forward relevant recommendations to all interested persons.