OREANDA-NEWS. June 17, 2013. The Office of the Federal Antimonopoly Service in Moscow (Moscow OFAS Russia) found that the Moscow Government violated Article 15 of the Federal Law “On Protection of Competition”. The Moscow Government exercised omissions – did not abolish it own instructions under which “Mosvodokanal” Moscow State Unitary Enterprise was obligated to conclude a contract for supplying a water purification reagent (sodium hypochlorite) with a particular supplier.

Under the instructions of the Moscow Government, “Mosvodokanal” OJSC (the legal successor of “Mosvodokanal” Moscow State Unitary Enterprise) must purchase no less that 50,000 tons of the reagent from “ВТЕ Proektgezelschaft Natriumhypochlorit mbH” – an investor in constructing a plant for production of sodium hypochlorite. The contract must be concluded for the entire refinancing period at the prices covering reasonable operational costs with 10% profitability.

“Currently “Mosvodokanal” OJSC is choosing suppliers of sodium hypochlorite on the basis of open competitive bidding, which enables any supplier or producer of sodium hypochlorite to compete for the right to supply the reagent. The instructions of the Moscow Government to purchase the reagent from a particular supplier eliminate the existing and prevent potential competition on the market”, commented Deputy Head of Moscow OFAS Russia, Olesya Milchakova.