The report of the Federal Antimonopoly service (FAS) on the state of competition, which on Thursday will consider the government notes that the state “swallowed up” about 70% of the Russian economy, the newspaper “Vedomosti”.

According to FAS estimates, last year the contribution of government and state-owned companies in GDP has increased to 70% from 35% in 2005, and in three years the number of state and municipal unitary enterprises tripled. Dramatically increased the number of regional and municipal unitary enterprises, which are the main enemies of competition in local markets.

In addition, the FAS, the government are reluctant to part with his property. Despite the fact that back in 2012 there was an extended list of the largest companies to be privatized, and the government was going to significantly reduce its stake in them, and even withdraw from the capital, now it is not going to break up with corporate control and wants to keep the possibility to influence the management.

The Antimonopoly authority also complains that the extension of the state’s share in the economy increases monopolistic tendencies and yet “not state-controlled economic space”.

According to head FAS Igor Artemyev, the report is not a programme of action, and a statement of the trend of the last two to three years. At the same time, Recalling the report of the Analytical center for the government, the Agency argues that the main reason for the reduction in the number of competitors began the actions of the authorities, and in the second place, respondents referred to changes in the legal base.

For example, reciprocal food sanctions led to a rise in food prices, and although this has created opportunities for expansion of domestic production, import substitution is a point, mainly in the production of meat and dairy products.

According to FAS, the restriction of import, additional administrative barriers, lists of foreign products (e.g., machinery) which are not purchased without approval from the government Commission on import substitution, and the restriction of competition in public procurement leads to higher prices without improving the product quality.

In this case, as, for example, stated on 23 September at the Moscow economic forum, the head of CSR Alexei Kudrin, the state-owned company is inefficient in its current form are a brake on development, so as not to spend comparable with international corporations amounts on innovation.

Earlier, it was reported that the FAS on behalf of the President prepares the national development plan competition to combat monopolies and government officials.

It contains a proposal to declare the competition a priority for officials at all levels. In addition, the anti-monopoly service wants to monitor other agencies and offers Putin to instruct her to verify how officials develop competition.

It is already known that many officials and representatives of big business did not like the intention of the FAS to expand its Supervisory powers.

FAS: in Russia there was state-monopoly capitalism, the state controls 70% of the economy 29.09.2016

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