OREANDA-NEWS. November 20, 2014. The President of the Russian Federation, Vladimir Putin, signed an Order (1) on introducing changes to the list of areas for evaluating performance efficiency of the heads of the constituent territories of the Russian Federation for creating favourable conditions for doing business.

From 1 January 2015, all governors will be evaluated under a new criterion – supporting competition based on the Competition Development Standard in the subjects of the Russian Federation. Thus, the state has made another step toward implementing the Standard in all Russian regions.

The Standard was devised to execute the Action Plan (“Road Map”) for “Developing Competition and Improving the Antimonopoly Policy” (2), approved by RF Government in December 2012.

To execute the instruction of the First Deputy of the Chairman of the Government of the Russian Federation, Igor Shuvalov, in 2014 the Standard is being introduced in 6 pilot regions — the Republic of Tatarstan, the Khabarovsk, Volgograd, Nizhniy Novgorod, Ulyanovsk regions and St Petersburg. Several Russian regions also are implementing the Standard under their own initiative, including: the Republic of Bashkortostan, the Republic of Mordovia, the Republic of Chuvashia, Moscow, Saratov, Tula, Tyumen and Yaroslavl regions, and Khanty-Mansijsk Autonomous District.

To develop competition in the regions, the governors will have to form a collegial body in line with Regional Standard to consider competition issues, approve a list of priorities and socially important markets factoring in specifics of economic development on a particular region, determine system-wide and sectoral indices for competition development, devise the “Road Map” to support competition development in a region, monitor competitive environment and evaluate the results of the work of the authorities.

Earlier the Head of FAS, Igor Artemiev, emphasized that “the main reason underlying low efficiency of the measures towards developing competition is absence of incentives for the governors, regional and municipal authorities to pursue the policy of protecting and developing competition. The heads of the authorities tend to solve the problems by increasing state intervention in the economy. Implementing the Regional Standard in all subjects of the Russian Federation, as well as responsibility of governors for unsatisfactory results of their work will help break the trend”.

According to the Head of FAS Fiscal Control Department, Vladimir Mishelovin, introducing the Standard will facilitate establishing a transparent system of work of the regional authorities, creating incentives and conditions for developing and protecting small and medium business, eliminating administrative barriers, achieving the key indices of developing competition in the regional markets.

FAS is ready for an open dialogue with the authorities in all subjects of the Russian Federation on solving the issues of competition development, set by the President and the Government upon approvals of the Competition Development Standard.

Reference:

1. No. 705 Order of the President of the Russian Federation of 04.11.2014 “On Approving Changes to the List of Areas for Evaluating Performance Efficiency of Senior Government Officials (the Heads of Supreme Executive Bodies of State Power) of the Subjects of the Russian Federation to Create Favourable Conditions of Doing Business, Approved by No. 1276 Order of the President of the Russian Federation of 10 September 2012”.

2. See Clause 2 of the Action Plan (“Road Map”) for “Developing Competition and Improving the Antimonopoly Policy”, approved by No. 2579-r Order of the Government of the Russian Federation of 28.12.2012. The full text of the Order can be found on the official Internet portal of legal information.