OREANDA-NEWS. September 12, 2014. The plenary session of “Competition Day in Russia” started with a formal opening ceremony. The Head of the Federal Antimonopoly Service (FAS Russia), Igor Artemiev, made a report “Synergy of powers of the antimonopoly body is the basis of efficient competition policy”.

He pointed out that such specifics of Russia as former planned economy, vast geography and particular mentality (cases against the authorities) provide for broad measures towards developing competition across all sectors of the economy.

The Head of the antimonopoly authority emphasized that FAS is a multifunctional body that supports pro-competitive development of markets and industries, so apart from traditional functions of an antimonopoly body FAS possesses other powers.

He stated that “an important order is just passed to reorganize Rosoboronzakaz. Some of its functions will be assigned to FAS. Thus, the entire spectrum of public procurement will be covered”.

As achievements in 2014, Igor Artemiev mentioned the fact that Article 178 of the Criminal Code of the Russian Federation imposing criminal liability for taking part in a cartel indeed started working: on 14th May 2014 the Court passed a guilty verdict under Article 178, based on a case of Novgorod OFAS against an auction cartel.

“The first judicial case opens the door to other criminal cases for taking part in cartels”, emphasized the Head of FAS.

On several counts, an executive was sentenced to 3 years 8 months of suspended imprisonment, deprived of the right to engage in a particular activity for 2 years 6 months, and fined 300,000 RUB.

The Head of the antimonopoly authority pointed out that in 2014 administrative liability for violations during procurement by state-run companies (No.223-FZ): “It is extremely essential since just procurement by Gazprom and “Russian Railways” together exceeds procurement with the federal budget”.

Discussing international cooperation, Igor Artemiev reminded that the European Economic Union will “go live” on 1st January 2015. He pointed out that “we formed a system designed to support effective suppression of violations of the antimonopoly law on national as well as cross-border markets”.