VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Vladimir Putin's opening address:
Good afternoon,
While discussing not long ago the state of affairs in various sectors of Russian economy, including the metals industry, our attention was drawn to the fact that some market participants use their monopolistic position rather selfishly. We have revealed a variety of cases of cartel agreements.
At the same time we have a clear understanding that creating conditions for proper competition is a major factor of development and a major condition for economic growth in any country.
I would like to note that after those discussions we have seen some positive developments. Suppliers of metallurgical raw materials have already agreed with metal producers on long-term contracts. Now it is necessary for the Government to finish this work, so that metal producers can come to the same agreements with their customers.
At the same time, this is all manual management. And we should create a system that would regulate the situation in the market fairly and rationally based on current legislation.
As you remember a new law On Protection of Competition was passed two years ago. Forms of antimonopoly law infringements and procedures for bringing them to account were specified.
Application of the new law has already brought certain positive results, in the formation of law enforcement and judicial practice.
Nevertheless, the level of competition in the Russian economy is still insufficient. This, of course, causes anxiety to government structures, rouses criticism among market participants, and affects the life of ordinary citizens.
According to the Federal Antimonopoly Service, in 2007 some 1,590 cases of abusing a leading position in the market, 226 forbidden cartel conspiracies, and 2,970 acts by government authorities and local government illegally limiting competition were revealed.
Above all, this affects ordinary people. Great losses are sustained by citizens, for whom the monopolistic practices of market participants are experienced simply as price rises. There are plenty of problems now, in the global economy and in our own, pushing this rise in prices upwards. You know the situation on the world market in foodstuffs, and in energy. We still do not control this question properly in the country, in our economy.
A vivid example is the rise in prices for aviation fuel and, accordingly, the rise in the cost of air transport. There are many other examples. Therefore it is necessary to think over the legislation in detail, and eliminate the weak points and loopholes revealed in it.
It should be systemic decisions on the formation of more transparent, flexible and fair rules of competitive struggle maintaining steady economic growth, reducing inflationary pressures, and reducing the level of corruption.
The Federal Antimonopoly Service has prepared certain programs. Today we should consider them. I also think that in the future they should be discussed as openly as possible, with the participation of both industry experts, and representatives of consumers.
Let's begin our work. Please, a word to Mr Artemyev, the head of the Federal Antimonopoly Service.
