PRESS: Antitrust calls for abolishment of state corporations law

MOSCOW, Sep 25 (PRIME) -- Russia’s law on state corporations gives them absolutely uncompetitive rights and possibilities and has to be abolished, the Federal Antimonopoly Service’s Director Igor Artemyev said in an interview with Kommersant business daily released Tuesday.

“The law on state corporations gives them completely uncompetitive rights and opportunities. I think it needs to be reformed... I think by abolishment,” he said, adding that the antimonopoly service is not yet taking any steps.

State corporations in Russia are not connected with medium and small businesses and produce all necessary products independently without using any contractors, Artemyev said.

Speaking about oil companies, Artemyev said the antimonopoly service supports an initiative to introduce a bill obliging the firms to supply 17.5% of their production to the domestic market.

“Rosneft already supplies over 20%, others should strive for it. The measure is necessary, first of all, to eliminate discrimination on the market, and, secondly, ensure a full load of our oil processing facilities with a possibility of subsequent supplies of necessary fuel volumes,” he said.

If oil refineries do not immediately reorient part of their supplies to the domestic market, the Federal Antimonopoly Service will demand introduction of legislative initiatives on requirements to sell oil products on the domestic market, Artemyev said.

“Many refineries started repairs, which creates additional pressure, that’s why they should immediately reorient part of their cargoes, especially on gasolines, to the domestic market. If they fail to do this, we will demand introduction of legislative measures and establishment of a direct rule that oil products should be sold on the domestic market,” he said.

He also said the antimonopoly service will not raise gas transportation tariff of gas giant Gazprom until the company starts providing all necessary data.

“We have two types of difficulties. The first one: Gazprom still does not provide full information. And until they hide data, we will not raise the transport tariff. We’ve not been raising it for three years already, because we believe that the situation is not transparent enough. The second: we demand that rules of non-discriminatory access are adopted,” Artemyev said.

Speaking about other tariffs, he said that there will be no more markups to cargo tariffs of Russian Railways, while an investment tariff will be introduced.

“If Russian Railways needs to build a line to some field, the company may sign a concession agreement, prepare an investment program, and then, besides the grid tariff, an investment (tariff) will be introduced,” he said.

The Federal Antimonopoly Service plans to set indexation of power grid holding Rosseti’s 10-year tariffs at the inflation level minus 0.1%, Artemyev also said.

“We want to give tariffs to Rosseti until 2028… on terms – inflation minus 0.1%,” he said.

End