OREANDA-NEWS. April 11, 2013. The 9 Arbitration Appeal Court upheld the judgment of Moscow Arbitration Court confirming legitimacy and reasonableness of the decision of the Federal Antimonopoly Service (FAS Russia) that the Ministry of Agriculture of the Tula region violated the antimonopoly law.

Earlier, FAS found that that the Ministry of Agriculture of the Tula region violated Part 1 Article 15 of the Federal Law “On Protection of Competition”. The Ministry unreasonably refused to grant subsidy to “Mosselprom” CJSC in the person of a branch “Uzlovskaya Poultry Plant” to compensate the costs of producing poultry in the Tula region in QI 2011.

The Ministry of Agriculture of the Tula region disagreed with the decision of FAS Russia and the judgment of Court of First Instance, and appealed to the 9 Arbitration Appeal Court to invalidate and abolish them. The Appeal Court, however, dismissed the claim.

“Recognizing legitimacy of FAS decisions by judicial bodies should prevent discrimination in allocating subsidies by regional bureaucrats”, said the Head of FAS Department for Control over the Authorities, Vladimir Mishelovin.

Reference:

Part 1 Article 15 of the Federal Law “On Protection of Competition” prohibits federal executive bodies, the authorities of the constituent territories of the Russian Federation, local self-government bodies, other bodies and organizations exercising the functions of the above bodies, organizations taking part in rendering state or municipal services, as well as state extra-budgetary funds, the Central Bank of the Russian Federation to pass acts and (or) exercise actions (omissions) that lead or can lead to preventing, restricting, eliminating competition, except cases of passing acts and (or) exercising such actions (omissions) provided for by the federal laws.