OREANDA-NEWS. February 28, 2011. Analysis of price behaviour in Q4 2010 in the regions of the Russian Federation showed continued significant growth of prices for socially important food products. The trend towards increase of prices for food products started in summer 2010, when abnormal weather conditions caused a deficit of agricultural products. This deficit mainly affected the grain market, as a result of which flour prices jumped up, reported the press-centre of FAS Russia.    

Price monitoring in Q4 2010 showed that ex-works and purchasing prices for all grades of flour continued to grow in most Russian regions. Nevertheless, Q4 did not experience prices soaring observed in the previous analysed period. As a result, prices for wheat and rye bread increased in all regions throughout the country. A similar situation developed in the markets of milk and milk raw materials. In its turn, the growth of prices for raw materials pushed up the ex-works and retail prices for pasteurized (sterilized) milk.

Analysis of a general pricing situation on the food markets on Q4 2010 showed that the most growth was observed in the market of sunflower oil. It was caused by considerable increase of prices for the raw materials for production of sunflower oil, which raised the prices for the finished products.

From August 2010 to 12th January 2011 regional offices of FAS Russia carried out inspections and initiated more than 510 cases on violating the antimonopoly law or other laws of the Russian Federation. 68 regional offices of FAS Russia initiated 223 cases upon the signs of antimonopoly violations: economic entities fixing monopolistically high prices for agricultural products (60 cases); economically unjustified refusals to conclude or evading contracts, concerted actions between economic entities resulted in price increase (128 cases), actions of the authorities of the constituent territories of the Russian Federation and local self-government bodies (34 cases), competition - restricting agreements or concerted actions (1 case).

Majority of these cases are related to concerted actions of economic entities aimed at fixing and maintaining prices for food products (Article 11 of the Federal Law “On Protection of Competition”), as well as fixing monopolistically high prices for agricultural products by economic entities (Article 10 of the Federal Law “On Protection of Competition”). Other antimonopoly proceedings were initiated upon revealing the signs of violations on the markets of sugar, salt and against the authorities. Overall, FAS initiated 128 cases upon the signs of violating Article 11 of the Federal Law “On Protection of Competition” and 60 cases based on Article 10 of the Federal Law “On Protection of Competition”. As of 12th January 2011 FAS made over 110 decisions on the cases for violating the antimonopoly law on the markets of: flour bread, butter, sunflower oil, eggs, peeled buckwheat, and salt; and against the actions undertaken by the authorities. In the analysed period more than 55 decisions were made on the cases initiated upon the signs of violating the Law on Trade.

As of 12th January 2011, the antimonopoly bodies, based on investigations of 113 cases and governed by the Code of the Russian Federation on Administrative Violations, imposed turnover fines and other types of fines for the total amount of 31.9 million Rubles.

FAS Russia and its regional offices continue investigating the earlier opened antimonopoly cases and employing other measures of antimonopoly control.