OREANDA-NEWS. November 11, 2013. To enforce the Federal Law “On Introducing Changes to the Federal Law “On Protection of Competition” and Some Legislative Acts of the Russian Federation”, the Federal Antimonopoly Service (FAS Russia) devised the Rules of the auctions for selling rights for the property subject to forced sale.

The Rules are aimed at enforcing the prohibition for legal entities, individual entrepreneurs and affiliated persons within the same price zone of the wholesale market to combine electric power transmission and (or) operational dispatch management in the electric power industry with generating and (or) buying-and-selling electric power, as well as at ensuring openness and transparency of the auctions for selling rights for the property subject to forces sale.

The Rules enable FAS to fully exercise its powers under Article 6 of No.36-FZ Federal Law of 26th March 2003.

Under Article 6 of No.36-FZ Federal Law of 26th March 2003, FAS enforced the prohibition for combining competitive and naturally monopolistic activities in the electric power industry. If forced reorganization (in the form of demerging or splitting up) of a legal entity cannot comply with Article 6 of No.36-FZ Federal Law in the part of affiliated persons, the antimonopoly body:

Files a claim to a Court on forced sale of the property owned by the legal entity and directly used for generating and (or) buying-and-selling electric power;

Files a claim to a Court on forced termination of the agreements (contracts), based on which the legal entity has the rights for the property directly used for generating and (or) buying-and-selling electric power.

The Rules establish the procedures for selling property subject to forced sale on the basis of a Court judgment issued upon a FAS claim.

“Adopting the Rules is another step towards enforcing separation of competitive and naturally monopolistic activities. Now the law contains the full cycle of the rules enabling FAS to not only expose violations of the norm of the law and file claims to Courts to enforce it, but also pursue final enforcement of Court judgments and the law on the basis of the Rules”, commented the Head of FAS Department for Control over Electric Power Industry, Vitaly Korolyov.