Yabloko’s Anti-Corruption Policy Centre initiated the  case worth 323 million roubles

Press Release, 7.10.2020

The Moscow Department of the Federal Antimonopoly Service of Russia has filed a case on violation of antimonopoly laws against six companies. The case was opened after an investigation by the Anti-Corruption Policy of the Yabloko party about a cartel on provision of amenities in Moscow. The cartel participants face a fine of 10 – 50 per cent of the initial purchase price and criminal prosecution under Article 178 of the Criminal Code of the Russian Federation.

The following companies participated in the cartel: EcoPark, Construction Company Armada, SK Krepost, Phoenix Group, SK Victoria, Fast and Forsazh. These firms entered the tenders of the state budget company managing housing and utilities in the Moscow district of Ramenki and always won with a low price reduction.

“Purchases for provision of public amenities are traditionally considered one of the most corrupt spheres. Often, prticipants of tenders are linked with the customer, so the price reduction does not exceed one or two per cent, and the quality of work leaves much to be desired,” Alexei Chumakov, Deputy head of Yabloko’s Anti-Corruption Policy Centre comments on filing of the criminal case.

According to Yabloko’s Anti-Corruption Policy Centre, the cartel agreement in Ramenki could be worth 323 million roubles. Among the purchases of the tenders there were improvement of yards, repair of entrances to blocks of flats and rental of construction equipment.

The Anti-Corruption Policy Centre suggests that the cartel in Ramenki may be related to the interests of the management of public utilities services. The owner of one of the companies – Oksana Kudryashova – a former official, was the head of the state public company of the city of Moscow “The Engineering Service of the Zamoskvorechye District”.

The Anti-Corruption Policy Centre will apply to the Ministry of Internal Affairs for opening of a criminal case against the participants in the cartel, since the cartel with an income of more than 50 million roubles constitutes a crime under Article 178 of the Criminal Code of the Russian Federation.