Head of FAS Aims for Improved Enforcement and Efficiency in Antimonopoly Laws

On the 24th of September 2012, the Head of Russia's Federal Anti-Monopoly Service (FAS), Igor Artemyev, speaking at the Third Russian-American Conference on “The Modern Antimonopoly Law and Judicial Practice in Russia and the U.S", announced that the third antimonopoly package had largely achieved the goal of improving enforcement and efficiency by the FAS.  “In the first six months of 2012 FAS and its regional bodies issued 603 warnings on violating the antimonopoly law. The companies executed 74% of the total number of the issued warnings on schedule”, said Artemyev. Urging reform of the system for procurement by natural monopolies and state-run companies, Artemyev added: “At the moment the system of state preferences is not regularized. It must be reformed because companies that are granted state preferences are in a more advantageous position in comparison with their competitors that were not granted such subsidies or other privileges.”
http://en.fas.gov.ru/news/news_32478.html

Moscow Sees Booming Outlet Mall Market

Moscow will soon host a spate of new retail outlet malls. U.S. real estate developer and investor Hines International Real Estate Fund and local developer Belaya Dacha opened their first mall, Belaya Dacha Outlet Village, this past weekend. Tenants at the mall, located about 4 kilometers from the Moscow Ring Road, include sportswear brands Adidas, Nike, Puma and Reebok, as well as US Polo, L'Etoile and Miss Sixty.  Last week, the Federal Anti-Monopoly Service approved a deal that would allow a wholly-owned Hines subsidiary to purchase Belaya Dacha's 49% share in the mall. However, a Hines spokesman stated, "We are not buying out Belaya Dacha. … Belaya Dacha is our long-term partner on the project." Meanwhile, two other outlets are scheduled to compete with Belaya Dacha Outlet Village soon.  Vnukovo Outlet Village plans to open by the end of the year, and the Fashion House Outlet Center Moscow is expected to open in March of 2013 near the Moscow suburb of Khimki.
http://www.themoscowtimes.com/business/article/outlet-mall-boom-under-way-in-moscow/466880.html

FAS to Monitor Big Three Cellular Operators for Evidence of Monopolistic Behavior

FAS announced that it would investigate Russia’s largest three cellular operators, MTS, VimpelCom and MegaFon, for evidence that they had violated Russia’s law “On protection of competition.”  The combined market share of MTS, VimpelCom and MegaFon is about 85%, which exceeds the threshold for collective dominance under Russia's competition law.  FAS is concerned that the dominance of the “big three” may allow them to collectively maintain high monopoly prices with regard to roaming services, and may lead to unfavorable contract terms for customers.

http://www.fas.gov.ru/fas-news/fas-news_30956.html

FAS Hopes to Suppress Price Increases for Food Staples

Reacting to growing media reports of price increases for staples such as flour, bread and milk, the FAS noted signs of price gouging for these everyday products.  Despite Russia’s national drought, the FAS announced there was currently no grounds for price growth in these socially important food markets, and warned that it would impose "heavy sanctions" on any party believed to be engaging in opportunistic price collusion or gouging.

http://en.fas.gov.ru/news/news_30738.html

FAS To Consider Possible Merger Between Russia's Two Largest Potash Producers

The FAS announced on Thursday that it would consider a possible merger between Russia’s two largest potash producers, Uralkali and Silvinit.  Although neither company has yet filed necessary merger paperwork with the FAS, the companies have publicly discussed a possible merger or alternative joint business operation.  The FAS noted that as any merger would create a national monopoly, it would not likely be approved without restrictions.  One alternative discussed has been foreign acquisition of between a 10% and 15% stake in Uralkali, a move that would require approval of the government commission on foreign investment chaired by Prime Minister Putin.

http://www.bloomberg.com/news/2010-08-26/russia-may-allow-its-two-largest-potash-producers-to-merge-watchdog-says.html