OREANDA-NEWS. July 22, 2014. The Federal Arbitration Court of the Urals District supported the judgment of the Court of First Instance on recognizing some provisions of the law of the Republic of Bashkortostan “On Regulating Land Relations in the Republic of Bashkortostan” partly invalid as contrary to the Federal Law “On Protection of Competition”.

Based on the Law, land plots were subject to provision to non-profit organizations formed by state unitary enterprises of Bashkortostan free-of-charge without tenders. The only such organization with a special status, however, is the Fund for Social Housing Construction of the Republic of Bashkortostan.

On 30th April 2014, Arbitration Court of the Republic of Bashkortostan allowed the claim of the Federal Antimonopoly Service (FAS Russia) on recognizing some norms of the Law as contrary to the Federal Law “On Protection of Competition”.

Earlier the Antimonopoly Service found that the Government of the Republic of Bashkortostan violated Part 1 Article 15 the Federal Law “On Protection of Competition” by issuing in 2011 a determination on the procedures for free-of-charge provision of land plots for housing construction to socially-oriented non-profit organizations formed by state unitary enterprises of Bashkortostan, and by issuing another determination a consequence of which was spending budgetary funds without competitive procedures provided for by the Federal Law “On Protection of Competition”. The decision was supported by Courts of three instances.

“We have pointed out repeatedly that FAS undertakes all necessary measures to restore equality of economic entities, particularly, in achieving priority goals of the State providing for land resources management”, commented Stats-Secretary, Deputy Head of FAS Andrey Tsarikovskiy.