Press Release, 21.04.2017

Lev Shlosberg, MP from the YABLOKO party of the Pskov Region Legislative Assembl, applied to the Office of the Federal Antimonopoly Service for the Pskov region asking the Service to institute proceedings under Article 16 of the Federal Law “On Protection of Competition” (prohibition of restricting competition agreements or concerted actions) in respect of the Administration of Pskov, and two companies OOO Tekhnodor and OOO UDS Pskov. It is assumed that there was a preliminary cartel agreement between the city government and the two companies on granting the companies a victory at the tenders for maintenance of public roads in Pskov.

Shlosberg asked the antimonopoly service to verify the legality of organising two auctions for the implementation of works on the maintenance of public roads of local importance in the territory of the municipal entity the City of Pskov.

It turned out that both the companies were registered in the Register of Legal Entities just on the threshold of the tenders, on 20 October 2016, and have the same legal address. Also these companies had not participated in any tenders earlier.

The founders of both the companies with equal shares in the authorized capital (33.3%) are Georgy Kukhi, Rein Kukhi and Alexander Kolpakov. Both the companies have the same director – Andrei Krot.

According to Shlosberg, contracts for the execution of works were signed on 19 December, 2016 for the period from 2 December, 2016, through to 30 November, 2019. However, the Pskov budget for 2017, and 2018-2019 had not been adopted by the time of the tenders, therefore the tenders were unlawful.

The Regional Department of the Federal Antimonopoly Service checked the data and decided to conduct an unscheduled inspection of the city administration and collected evidence so that to initiate a case for the conclusion of a cartel agreement.

If the anti-monopoly service finds a violation of the Law, the parties to the cartel agreement will face fines under Article 14.32 of the Administrative Code of the Russian Federation (conclusion of a competition-restricting agreement, implementation of concerted actions restricting competition, coordination of economic activities).

The first hearing on the case is scheduled for 3 May, 2017. Lev Shlosberg will participate in the proceedings.