OREANDA-NEWS.  July 01, 2013. The Arbitration Court of St Petersburg and the Leningrad Region upheld the decision of the Office of the Federal Antimonopoly Service in the Leningrad region (Leningrad OFAS Russia) that Kingisepp Town Authority violated Part 1 Article 1` 15 of the Federal Law “On Protection of Competition”.

As a result of actions undertaken by the local authorities, many economic entities that had the right to take part in a tender were “cut off”.

On 25th December 2012, Leningrad OFAS Russia once again registered a violation of the antimonopoly law granting subsidies to a unitary enterprise without tender procedures.

The Commission of Leningrad OFAS Russia усestablished that Kingisepp Town Authority granted subsidies to “Zhilischno-Kommunalnoe Khozyaistvo [Municipal Utilities]” Municipal Unitary Enterprise - 1 million Rubles to repair intra-town roads. This type of works constitutes municipal needs, and which means that it must be organized through a tender under the Federal Law “On State and Municipal Procurement of Goods, Works, Services”.

“The used scenario contradicts the antimonopoly law. Many federal districts have established positive judicial practice on similar cases”, points out Deputy Head of Leningrad OFAS Russia, Dmitry Vasiliev.