OREANDA-NEWS. February 25, 2014. The Head of the Department of the Federal Antimonopoly Service (FAS Russia) for Control over the Authorities, Vladimir Mishelovin, took part in the IX AlcoCongress as part of the business programme of PRODEXPO-2014.

“It is necessary to discuss and elaborate solutions of the two key tasks”, stated Vladimir Mishelovin, “to find a balance of interests of the state, producers and consumers of alcohol products, and create a monopoly of legal retail that would be able to offer the goods to consumers in convenient places at competitive prices”.

Vladimir Mishelovin outlined the issues to which the antimonopoly bodies shall pay attention in 2014: suppressing regional protectionism, supporting the efforts of market participants and the authorities against circulation of illegal products, the processes of drafting and coordinating the uniform terms and the rules of circulation of alcohol products within common economic space.

He emphasized that “FAS now works with 26 incidents of regional protectionism, and the work in this area will continue. Preferences to “insider” producers and goods, barriers for the “outsiders” violate the basic principles of the unity of economic space and free movement of goods”.

FAS supports participants’ initiatives towards association in sectoral self-regulating organizations (SRO) and establishing a system of public control over market performance.

Discussing the issue of illegal alcohol products, Vladimir Mishelovin said that it is the major threat to fair competition. One of important measures against counterfeit products is introducing USAIS1 in retail.

“USAIS system is a method of reducing sales of illegal products. Network retail will be able to manage its implementation on one’s own, while non-network trading needs support. In the near future USAIS should give a competitive advantage to retail because only those stores will remain on the market that can ensure a high level of control over sales of alcohol products”, stated Vladimir Mishelovin.

Also, according to the Head of FAS Department for Control over the authorities it is necessary to accelerate resolving other issues related to suppressing circulation of illegal products, in particular, confiscate equipment of illegal producers. Vladimir Mishelovin suggested holding government officials liable up to demoting them for the facts of illegal commercial production of alcohol in the area and inefficient efforts to prevent them.

Among other important measures towards developing market of illegal products, Vladimir Mishelovin mentioned preventing increase of excise duties and the need to harmonize the law that regulates circulation of alcohol products on the markets of the Customs Union.

He pointed out that “to preserve and develop the industry we must support Russian producers – exporters by all possible methods and means – from normative legal regulation to the measures on promoting our goods on the foreign markets. Now we have one law in vigor – common for all alcohol segments. Given the basic law on production and circulation of alcohol products that determine the main rules and principles for the entire industry, efficient support of producers for developing healthy competition can probably be introduction of elements of independent control –certain normative legal acts according to the types of goods by reference to specific features of production, circulation, and certainly the tasks of protecting health and other consumer interests”.

In conclusion, Vladimir Mishelovin pointed out that FAS is committed to maintain continuous contact with the business-community and branch associations. For instance, regarding the results of 2013 representatives of the alcohol industry, adjacent sectors, federal executive bodies, the authorities of the constituent territories of the Russian Federation, independent experts took part in the work of FAS Expert Council for developing competition on the market of production and circulation of ethylene, alcohol and alcohol-containing products. The problems and the objectives considered by the Expert Council are the priorities and ориентирами in the work of competition authorities.

Reference:
USAIS – Unified State Automated Information System for recording the volume of production and circulation of ethanol, alcohol and alcohol-containing products.