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Rosbalt, June 9, 2004

Igor Artemyev proposes a competition-based mechanism for state purchases of oil products

Moscow, June 9, 2004. Head of the Antimonopoly Service Igor Artemyev considers it reasonable to introduce a competition-based mechanism for state purchases of oil products. According to the Rosbalt correspondent, he made this statement at a press conference conducted during a break in the meeting of Antimonopoly Service Board on Wednesday.

According to Artemyev, "this will help avoid corruption in state purchases of oil products." Moreover, the head of the Antimonopoly Service also noted that introduction of competition-based procedures would make it possible to cut the costs of such purchases. Practical introduction of this mechanism requires insignificant amendments into 17 current laws. "However, the return will be colossal," said Artemyev.

Deputy Head of the Economic Development and Trade Andrei Sharonov thinks that "the Federal Antimonopoly Service should concentrate on highly competitive markets. These are the markets of natural and local monopolies - the housing and utilities sector, transportation, the energy sector and construction," said Sharonov.

According to Sharonov, the antimonopoly bodies should detect and intercept collusion between different levels of power aimed at reducing competition. He illustrated his opinion with a widespread example, when the authorities grant different privileges to federal state unitary enterprises. "These actions distort market infrastructure. They are dangerous as they are linked to the authorities and shielded by the authorities," he noted.

Sharonov also thinks that one of the most complicated and important tasks is the fight against the so-called "trust agreements" and "cartel collusions". He also noted that it was very difficult to detect and prove such collusion in court.

He also noted that the Federal Antimonopoly Service should focus on protecting intellectual property rights. As "pirates" in intellectual property remain a serious problem for Russia and can involve serious sanctions on behalf of Russia's trade partners, added Sharonov. - The USA are going to introduce sanctions against Russia and Russia's losses may amount to USD 1 bln." Consequently Russia should "demonstrate its serious intent in its fight against intellectual piracy," said Sharonov.


See also:

Anti-monopoly legislation

Rosbalt, June 9, 2004

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