OREANDA-NEWS. July 28, 2014. Ivanovo Regional Arbitration Court upheld the decision of the office of the Federal Antimonopoly Service in the Ivanovo region (Ivanovo OFAS Russia) that Ivanovo Authority had violated the antimonopoly law.

On 18th February 2014, Ivanovo OFAS found that actions of Ivanovo Authority were illegal. The municipal body granted a subsidy to a community-based public self-government over 620,000 RUB to carry out urban development works. In its turn, the public self-government independently determined a contractor and concluded a contract.

According to Deputy Head of Ivanovo OFAS, Tatiana Mikheeva, Ivanovo Authority effectively disengaged itself from an obligation to organize a tender: “Budgetary funds were allocated to satisfy municipal needs without mandatory tender procedures, applying an unlawful scheme. By giving the funds to the public self-government, Ivanovo Authority restricted competition among organizations that could compete for budgetary funds at the tender”.

Ivanovo OFAS issued a determination to Ivanovo Authority to eliminate the violations of the antimonopoly law but officials challenged it at Court. As a result of the hearings, the decision and the determination issued by the antimonopoly body were recognized legitimate.