OREANDA-NEWS. January 03, 2014. The Federal Antimonopoly Service (FAS Russia) found that Norilsk City Authroity violated Clause 1 Article 15 the Federal Law “On Protection of Competition”.

FAS opened the case against Norilsk City Authority (the Krasnoyarsk region) and the Property Department of Norilsk City Authority upon signs of violating Clause 1 Article 15 the Federal Law “On Protection of Competition”, and against Norilsk City Authority, the Property Department of Norilsk City Authority and “Norilsk Nickel MMC” OJSC upon signs of violating Article 16 the Federal Law “On Protection of Competition” after considering petitions filed by “Chernogorsk Mining Company” Ltd. and “Amur” Gold-Mining Cooperative” OJSC included in “Russian Platinum” Group. The companies reported that Norilsk City Authority created obstacles for developing two new deposits the Krasnoyarsk region - “Chernogorskoye” and “Norilsk-1” (the southern part).

Investigating the case, FAS established that Norilsk City Authority refused to provide land plots to “Chernogorsky Mining Company” Ltd. and “Amur” Gold-Mining Cooperative” OJSC necessary to exercise economic activities by these companies and at the same time provided land plots to “Norilsk Nickel MMC” OJSC within the requested boundaries.

The FAS Commission also established that the Property Department as a structural unit of Norilsk City Authority followed its instructions so the Department did not violate Part 1 Article 15 the Federal Law “On Protection of Competition”.

The FAS Commission formed a separate case against Norilsk City Authority, the Property Department of Norilsk City Authority and “Norilsk Nickel MMC” OJSC upon signs of violating Article 16 the Federal Law “On Protection of Competition”.

“Local authorities must not prevent entry of new investors in the region. Developing new deposits means new jobs, new injections of finances in the budget, and new social programmes. Also when a new participant comes to the market, it always facilitates development of competition” pointed out Deputy Head of FAS Department for Control over the Authorities, Natalia Isaeva.

Reference:

1. Clause 1 Article 15 the Federal Law “On Protection of Competition” prohibits federal executive bodies, the authorities of the constituent territories of the Russian Federation, local self-government bodies, other bodies or organizations exercising the functions of the above bodies, organizations that take part in rendering state or municipal services, s well as state extra-budgetary funds, the Central Bank of the Russian Federation to pass acts and (or) exercise actions (omissions) that lead or can lead to preventing, restricting, eliminating competition, except case of adopting acts and (or) exercising actions (omissions) provided for by the federal laws, in particular, it is prohibited: introducing restrictions to form economic entities in some fields of activity, and prohibiting or introducing restrictions to exercise certain types of activities or produce certain types of goods

2. Article 16 the Federal Law “On Protection of Competition” prohibits agreements between federal executive bodies, the authorities of the constituent territories of the Russian Federation, local self-government bodies, other bodies or organizations exercising the functions of the above bodies, as well as state extra-budgetary funds, the Central Bank of the Russian Federation, or between them and economic entities, or concerted actions by these bodies and organizations, if such agreements or concerted actions that lead or can lead to preventing, restricting, eliminating competition.