OREANDA-NEWS. June 26, 2013. The Federal Arbitration Court of the Moscow District upheld the rulings of Moscow Arbitration Court and the 9th Arbitration Appeal Court on a case of a bid-rigging agreement between an individual entrepreneur Eske, “Sirius” Ltd. and “Blits” Ltd. On 6th April 2012 the Federal Antimonopoly Service (FAS Russia) found that an individual entrepreneur Eske, “Sirius” Ltd. and “Blits” Ltd. concluded and participated in an agreement that resulted in maintaining auction prices (in breach of Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”).

The agreement was implemented at 8 open electronic auctions for purchasing food products for the state needs. Participants colluded and pursuit the conduct strategy at auction that prevented participation of bona fide bidders. It enabled the members of the cartel to maintain the maximum possible prices at the auctions.

“The ruling of the Cassation Court confirmed legitimacy of FAS actions already for the third time, which is a clear signal to auction bidders that such actions are unacceptable. Recommendations on exposing similar cartels are sent to all regional offices with which we jointly monitor public procurement”, commented Deputy Head of FAS Anti-Cartel Department, Andrey Tenischev.

Reference:

On 18th January 2013, the Investigation Division of the Main Department of the Ministry of Interior in the Urals Federal District initiated a criminal case against unidentified persons from executives of “Sirius” Ltd. and “Blits” Ltd. and an individual entrepreneur Eske upon the fact of concluding the cartel agreement to maintain prices at electronic open auctions (Article 178 of the Criminal Code). Guilty persons that committed such violations can be held criminally liable and imprisoned for up to six years.