OREANDA-NEWS. On September 02, 2008 due to putting into effect Article 17.1 of the Federal Law "On Protection of Competition", the Federal Antimonopoly Service (FAS Russia) sent explanations on specific procedures for entering into agreements related to the state and municipal property to the Heads of the constituent territories of the Russian Federation, reported the press-centre of FAS Russia. 

No. 108-FZ Federal Law "On Introducing Amendments to the Federal Law "On Concession Agreements" and Certain Legislative Acts of the Russian Federation" carried into effect Article 17.1 of the Federal Law "On Protection of Competition", which regulates specific procedures for entering into agreements related to the state and municipal property.

According to Article 17.1, lease agreements, gratuitous use agreements, trust agreements, and other agreements (contracts) that allow for passing the rights of ownership and (or) use of the state and municipal property, can be concluded only based on the results of tenders of auctions for the right to enter into such agreements.

Due to entering into effect Article 17.1 of the Federal Law "On Protection of Competition" and numerous enquiries to FAS Russia on its application, and being governed by Clause 5 Part 2 Article 23 of the Federal Law "On Protection of Competition", FAS Russia explained various issues of applying the Article to the Heads of the constituent territories of the Russian Federation, including:

- granting rights of ownership and (or) use, related to the state and municipal property, to the authorities and local self-government bodies;

- granting the rights of ownership and (or) use, related to the state and municipal property, in order to provide social services as well as to support small businesses;

- concluding gratuitous use agreements related to the state and municipal property.