OREANDA-NEWS. November 06, 2009. Comes into effect 178 Article of the Criminal Code of the Russian Federation, which introduces heavier sanctions for antimonopoly violations, reported the press-centre of FAS Russia.

"FAS will not initiate criminal proceedings against the violators, which will be the prerogative for the law enforcement bodies, but at the suggestion from FAS, -explained Igor Artemyev, the Head of the Federal Antimonopoly Service (FAS Russia). - First, we will have to prove the fact of violating the antimonopoly legislation, for instance, a cartel collusion, then go through all judicial authorities because the companies use their rights to immediately challenge our decision through a court, and only then if the court confirms our decision, we can forward the documents to the Ministry of Interior to initiate criminal proceedings".

According to the Head of FAS Russia, the law enforcement bodies will not be able to initiate criminal proceedings for violating the antimonopoly legislation without prior determination by an antimonopoly body.

Criminal liability is introduced for preventing, restricting or eliminating competition, such as:

"Entering into competition-restricting agreements or exercising competition-restricting concerted actions";

"Repeated abuse of dominance by fixing and maintaining monopolistically high or monopolistically low prices, unreasonably refusing or evading contracts, restricting market entry".

Such actions are subject to criminal punishment if restriction of competition also caused heavy damages to individuals, organizations or the state or resulted in gaining income on a large scale.

Income on a large scale is defined as income exceeding five million Rubles and especially large-scale income - as exceeding twenty five million Rubles.

Heavy damages are defined as exceeding one million Rubles and especially heavy damages - exceeding three million Rubles.

Abuse of dominance qualifies as repeated if a person committed more than two such actions within three years for which this person was made administratively liable. That is, the same person violated the antimonopoly legislation three times within three years.

178 Article of the Criminal Code of the Russian Federation specifies the following sanctions:

"A fine from 300,000 to 500,000 Rubles or the salary or other income of the convicted person for a period of one to two years;

or imprisonment for a period of up to three years, with depriving of a right to hold certain position or be involved in certain activities for a period of up to one year, or without it".

If such actions involved abuse of a work position, or there was damage or destruction of property, the punishment is more severe: such actions are punished by imprisonment for a period of up to six years and a fine for up to one million Rubles or the salary or other income of the convicted person for a period of up to five years, or without a fine, with depriving of a right to hold certain position or be involved in certain activities for the period from one to three years, or without it.

The same penalties are specified for antimonopoly violations that caused especially heavy damages or resulted in gaining income on especially large scale.

If violence or threats of violence are involved the prison term is seven years with depriving of a right to hold certain position or be involved in certain activities for the period from one to three years.