OREANDA-NEWS. May 22, 2013. Moscow Arbitration Court confirmed legitimacy of the decision of the Federal Antimonopoly Service (FAS Russia) on a case against the Government of the Republic of Bashkortostan that had restricted competition in granting land plots for social housing construction.

In July 2011, the Government of the Republic of Bashkortostan иissued a Decree on granting land plots for construction to socially-oriented non-commercial organizations formed by state unitary enterprises in Baskhortostan, under which land was granted free-of-charge and without competitive bidding.

Another Decree of the Government of the Republic introduced the rules for determining the amount of subsidies and conditions for granting them by competitive selection of non-commercial organizations. Thus, budgetary funds were spent without competitive procedures provided for by the law on state procurement (No.94-FZ). The Law and the Decree of the Government of the Republic of Bashkortostan also breached the Land Code of the Russian Federation.

On 25th December 2012, the FAS Commission found that the Government of the Republic of Bashkortostan violated Part 1 Article 15 of the Federal Law “On Protection of Competition”.

The FAS Commission issued a determination to the Government of the Republic of Bashkortostan to eliminate the violation; but the regional authority disagreed with FAS decision and determination and filed a lawsuit. Moscow Arbitration Court confirmed legitimacy of FAS decision.

“Providing social housing to the Russian population is a priority task for the state and cannot be exercised through creating conditions by the authorities of the constituent territories of the Russian Federation that restrict competition, particularly, by creating market preferences to a particular participant”, Vadim Solovyov, the Head of FAS Department for Control over Housing & Utilities, Construction and Natural Recourses, Vadim Solovyov.