Russian railways

New Monopolies Law May Be Drafted.

FAS head Igor Artemyev described the basic elements of the law as “draconian” in a meeting of the agency. Those elements include treating purchases by state monopolies under the same rules as state purchases and possibly treating purchases by state corporations the same way. Artemyev explained that the monopolies has a negative effect on the economy as a whole. The law may be passed this year.

Antimonopoly measures in the law “On State Purchases” require auctions and competitions for state purchases. Now Gazprom, Transneft, Russian Railways and the Federal Network Co. determine their own purchasing procedures, due to their status as open joint stock companies. Observers say that the FAS is touching on a sphere where the level of corruption is high and that the new law would have a heavy impact on the practices of those companies, which frequently place orders with their own subsidiaries.