Restrictive agreements.

Russian legislation forbids conclusion of agreements or co-ordinated activity of companies operating in the same commodities' market if such agreement or activity might result in restriction of competition.

In particular, it is prohibited to conclude contracts or co-ordinate activity if it leads to the following:

- controlled prices (tariffs), discounts, extra charges (surcharges) or margins;
- increased, reduced or controlled prices in other way at auctions or tenders;
- a split market according to the territorial principle, or according to the volume of sales or purchases, or assortment of goods or according to characteristics of sellers or buyers;
- restricted access to the market to other companies or force them out of it.

Companies that are not competitors to each other, for example those within a vertically integrated group of companies, may not conclude agreements that restrict competition unless aggregated market share of these companies is less than 35 per cent.

It is prohibited to co-ordinate the activity of commercial entities if such co-ordination may lead to restriction of competition. Infringement of the regulation can result in liquidation of the organisation which carries out co-ordination activity, by a court decision following the Federal Antimonopoly Service (FAS)' claim.

 

 

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