OREANDA-NEWS. March 18, 2013. The Federal Arbitration Court of the North-Western District supported the decision of the Office of the Federal Antimonopoly Service in St Petersburg (St Petersburg OFAS) regarding an Order of the Governor of St Petersburg “On the Procedures for Assessment of Publically Owned Real Estate”.

In August 2012, St Petersburg OFAS filed a lawsuit to an Arbitration Court to hold the Order invalid as inconsistent with the Federal Laws “On Protection of Competition” and “On Assessment Activities in the Russian Federation”.

The Order introduced mandatory certification of assessors in St Petersburg to be exercised by the Council for Assessor Certification. Such certification system is contrary to the Law “On Assessment Activities in the Russian Federation”, which does not provide for assessor certification by the authorities of the constituent territories of the Russian Federation.

The Order established the Certification Procedures, under which “GUION” State Unitary Enterprise was granted the powers for accepting assessors’ applications for certification. “GUION” also set the procedures for assessor selection, engaged certified assessors in assessment of real estate items, selected assessors and concluded contracts with them, carrying out expert examination of the assessments completed by other assessors.

At the same time the company was involved in assessment activities because being one of the market participants it still was able to get assessment orders by-passing any procedures for assessor selection. Thus, the Governor’s Order created advantageous conditions for “GUION” State Unitary Enterprise on the market of services for assessment of real estate items.

In December 2012, the Arbitration Court of St Petersburg and the Leningrad Region pronounced the Order “On the Procedures for Assessment of Publically Owned Real Estate” void. On 11th March 2013 the Federal Arbitration Court of the North-Western District upheld the judgment of the Court of First Instance and dismissed the cassation appeal of the Governor of St Petersburg.