Leading the free market? Cartels outlawed in Russia

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August 8 , 2017 – Fort Russ News – 

KtovKurse– translated by Inessa Sinchougova 

Russian President Vladimir Putin instructed to tighten criminal and administrative responsibility for the creation of cartels and to form a coordination body between departments to combat them.

Putin approved a list of instructions on the implementation of priority measures aimed at identifying and suppressing the activities of cartels.

The president instructed the government to introduce a corresponding bill to the State Duma.

Until October 1, the Cabinet should take measures to “improve the interaction” of antimonopoly bodies with interested agencies and companies.

This is necessary for a more prompt response to violations of Russian law when concluding anticompetitive agreements.

The President also instructed the Russian Ministry of Internal Affairs, the FSB of Russia, and with the participation of the Prosecutor General’s Office of Russia to develop an interdepartmental program of measures to identify cartels and suppress their activities, and create an interdepartmental coordinating body if necessary.

Note that a single entity that holds a monopoly cannot be a cartel, though it may be guilty of abusing said monopoly in other ways. Cartels usually occur in oligopolies (wherein a market or industry is dominated by a small number of sellers), and usually involve homogeneous products. We can all think of a few!

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