OREANDA-NEWS. July 27, 2012. The Federal Antimonopoly Service (FAS Russia) found that the Ministry of Agriculture of the Tula Region unlawfully granted subsidies to one of the companies applied to the Ministry, which put this company is an unequal position in comparison with other organizations and restricted competition (Part 1 Article 15 the Federal Law “On Protection of Competition”), reported the press-centre of FAS Russia

The case was initiated upon a petition of “Mosselprom” OJSC that the Ministry of Agriculture of the Tula Region had refused to grant subsidies in order to compensate costs of producing poultry meat in the Tula region in Q1 2011.

The Ministry refused to grant subsidies because “Mosselprom” OJSC is registered for tax purposes in Domodedovo, the Moscow region.

Investigating the case, FAS established that Mosselprom” OJSC is registered with tax bodies of the Tula region according to the location of its branch – “Uzlovo Poultry Plant”, which operates in the Tula region, and met all requirements for granting subsidies specified in regulations of the Tula region.

However, the sum allocated from the federal budget for supporting poultry- and pig-breeding companies in the Tula region, was distributed between five economic entities that compete with “Mosselprom” OJSC on the market of selling poultry meat in the Tula region.

“The refusal of the Ministry of Agriculture of the Tula Region violated not only the antimonopoly law by also one of the fundamental principles of the national agricultural policy – unity of the market of agricultural products, and equal conditions of competition on the market. The conditions for obtaining state support must be equal for all goods producers. “Mosselprom” OJSC provides working places in the Tula region and pays taxes to the local budget, so it has the right to claim state support”, said the Head of FAS Department for Control over the Authorities, Vladimir Mishelovin.

Reference:

Part 1 Article 15 the Federal Law “On Protection of Competition” prohibits federal executive bodies, the authorities of the constituent territories of the Russian Federation to pass acts and (or) exercise actions (omissions), which lead or can lead to restricting competition, except cases of passing acts and (or) exercising such actions (omissions) provided for by the federal laws.