OREANDA-NEWS. December 25, 2013. The Federal Antimonopoly Service (FAS Russia) initiated a case against “Urals Chemical Reagents Plant” OJSC upon signs of abusing dominance (a violation of Part 1 Article 10 of the Federal Law “On Protection of Competition”).

To enforce the Federal Law “On State Defence Procurement”, FAS earlier received information from participants of state defence procurement on the facts of fixing prices for military chemical reconnaissance device by “Urals Chemical Reagents Plant” OJSC in 2013, that by over 5% exceeds the price calculated on the basis of price indices and deflator-indices in the types of economic activity determined in accordance with the procedures established by the Government of the Russian Federation. In reality the prices for military chemical reconnaissance device were overrated more than threefold.

FAS suspects that “Urals Chemical Reagents Plant” OJSC violated the existing procedures for determining the costs of producing defence products supplied under state defence procurement.

A special Commission, comprising representatives of Rosoboronzakaz, will inquire into the reasons and circumstances of the price growth.

“The practice of executing the new powers of FAS established by the Law “On State Defence Procurement” shows that the principal executors and co-executors of state defence procurement obtained a viable mechanism of deterring unreasonable growth of prices for raw materials, supplies, component parts, as well as the works and services necessary to execute it. We will continue expanding the enforcement practice and enhance efficiency of this instrument”, commented Stats-Secretary Deputy Head of FAS Andrey Tsarikovskiy.

Reference:

No. 275-FZ Federal Law “On State Defence Procurement” of 29.12.2012 approved specifics of antimonopoly standards in state defence procurement (Article 14). The Law proposes a new procedure of exposing signs of violations and investigating cases on violating the antimonopoly law in the defence-and-military complex that will enhance efficiency of FAS efforts in this area.