OREANDA-NEWS. July 28, 2014. The Federal Antimonopoly Service (FAS Russia) terminated the proceedings against “Technical Glass Research Institute” OJSC (“NITS” OJSC) – manufacturer of specialized glass for aviation, space and military equipment.

In 2013, FAS was approached by several lead executors on state contracts of the Ministry of Defence of the Russian Federation, including “Rosvertol” OJSC, a maker of Mi-28N and Mi-35 helicopters and “SAZ” OJSC – a manufacturer of “Khrizantema-S” – a manufacturer of anti-tank combat vehicles. Another claimant was “123 APZ” OJSC that repairs Il- 76. According to the claimants, “NITS” OJSC, being the only supplier of unique glass for the above military equipment, fixed monopolistically high prices for their products.

The joint Commission of FAS Russia and the Federal Service on Defence Procurement (Rosoboronzakaz) verified reasonableness of prices set by “NITS” OJSC and established that their growth in 2013 was fully justified by the increased company’s costs.

“Under Article 14 of the Federal Law “On Public Defence Procurement” lead executors must inform us about soaring rise of procurement prices that considerably exceeds the inflation rate. However, such increases are not always the consequence of abusing. In each case, FAS carries out detailed economic analysis of company’s business operations and establishes where a price increase is justified”, pointed out the Head of FAS Department for Control over Industry and Defence Complex, Maxim Ovchinnikov.