OREANDA-NEWS. December 13, 2013. The Federal Arbitration Court of the Moscow District supported the decision of the Federal Antimonopoly Service (FAS Russia) and Courts of lower Instances on a case on restricting competition by the Government of the Republic of Bashkortostan in providing land plots for constructing social housing.

In July 2011, the Government of the Republic of Bashkortostan issued an order on providing land plots for construction for socially-oriented non-commercial organizations under which the land was allocated free-of-charge and without competitive procedures. These organizations were formed by state unitary enterprises of Bashkortostan. Another order issued by the Republican Government introduced the rules for determining the amount of subsidies and conditions for granting them through a competitive selection of non-commercial organizations.

For instance, budgetary funds were sent by-passing competitive procedures provided for by the law on public procurement (No.94-FZ) and the orders contradicted 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” (competition-restricting actions by the authorities) and issued a determination to eliminate violations.

The Government of the Republic of Bashkortostan executed FAS determination and eliminated violations in providing land plots. However, the Government of the Republic of Bashkortostan filed a lawsuit challenging the actions undertaken by the antimonopoly body. The Courts of three instances; Moscow Arbitration Court, the 9th Arbitration Appeal Court and the Federal Arbitration Court of the Moscow District confirmed legitimacy of FAS decision and determination.

“We are glad that the Court once again confirmed the need to sell land through and legitimacy of our decision”, commented Stats-secretary, Deputy Head of FAS Andrey Tsarikovskiy.