Putin orders govt to work on competition improvement proposals

MOSCOW, Dec 22 (PRIME) -- President Vladimir Putin has ordered the government to work on proposals to lower the administrative barriers that block development of competition until February 1, 2019, as seen by PRIME in the national plan for development of competition in 2018–2020 published on the government’s Web site late on Thursday.

Putin also signed a decree on main direction of state policy for development of competition, including provision of equal conditions and freedom of economic activity, provision of development of small and medium-sized businesses, allocation of state investment on development of competition, and contraction of the amount of state companies.

Russia should switch to market pricing of natural gas by 2020 “through forming of exchange and non-exchange indicators of prices for natural gas, secured by higher sales of natural gas through organized trade,” the plan read.

The market of oil and oil products should also switch to the market pricing mechanism through organization of export trade in oil and establishment of a benchmark price for oil. In the oil product market, the list of measures includes development of trade in futures and of small-scale wholesale trade, formation of market price indicators for the small-scale wholesale market, and deregulation of prices for transportation of oil products via main pipelines.

The plan also stipulates that the amount of state procurements with participation of small business and social non-commercial organizations should grow at least twice by 2020 as compared with the level of 2017. Some companies should increase procurements from small and medium-sized businesses to 18% of their total procurements by 2020.

The government should develop bills by January 1, 2019 that prohibit state and municipal authorities to buy direct or indirect ownership in companies that “operate at product markets in conditions of competition.” The bills should be applicable to all state companies except strategic companies and military firms.

The plan orders natural monopolies “to eliminate tariff discrimination” and ensure “transparent and long-term tariff regulation.” The government plans to develop cooperation of businesses and the state in the sphere of transport services, including formation of market indicators, and control of presence at the cargo transport market.

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