Russian FAS Called For the Expansion of Antimonopoly Regulation

Russian FAS Called For the Expansion of Antimonopoly Regulation
Photo: 11.03.2022 227

To keep prices from rising, it is proposed to extend antimonopoly regulation to companies that do not occupy a dominant position in the market. FAS also proposes to speed up its inspections and allow it to issue warnings and injunctions more quickly. 

On March 10th, the head of the Federal Antimonopoly Service, Maxim Shaskolsky, spoke in the State Duma about the fight against rising prices. He noted that the agency is actively using the tools available, but also pointed out that part of the price increase is due to objective factors and dependence on exports, and is associated with the crisis in Ukraine.

The deadline for issuing warnings was reduced to one or two days. Now a full investigation takes up to nine months and even more, Shaskolsky noted.

The FAS proposed to extend antimonopoly prohibitions not only to dominant companies, but also to other market participants, including intermediaries in some cases. The reason for this may be an increase in prices. The list of such product categories will be determined by the government. The antimonopoly agency has already prepared relevant initiatives and asks the State Duma to consider them in the nearest future, Shaskolsky said.

He also thanked the State Duma for passing the law on parallel imports, which will allow the supply of legally purchased goods abroad to Russia without the approval of the original manufacturer for such supplies. At the same time, Shaskolsky noted that it is necessary to fine-tune this norm in order to exclude parallel imports of goods, analogues of which are produced in the Russian Federation.

FAS conducted 217 inspections due to price increases. It issued 22 warnings, including in connection with public statements that could cause rush demand. 24 regions were issued warnings in connection with violations in the field of access of agricultural producers to subsidies.

Margins on socially important products were reduced from 22% to 10%. Seven federal retail chains and about 40 regional chains in 19 constituent entities of the Russian Federation have introduced a voluntary limitation of markups on dairy products, "borsch set", and bakery products. 61 out of 68 Russian sugar refineries accepted the proposals of the Federal Antimonopoly Service to limit price increases.

Russian metallurgical enterprises buy manganese, chromium, ferroalloys from abroad. This is one of the reasons for the increase in the price of their products. Markets for wood, plywood, chipboard, according to the FAS are low-concentrated. The increase in prices for these products is associated with new requirements for timber warehouses, which increased the costs of producers, as well as seasonal rush demand.

The increase in prices for children's goods is due to the fact that manufacturers have canceled promotions that lead to price reductions of up to 50%, as well as to disruption of supply chains.

Shaskolsky also noted that now suppliers have no obligation to enter information into the Federal State Information System for Pricing in Construction (FSIS CS). At the same time, such a system will make it possible to build a more predictable pricing policy.


food markets  Russia 

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