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
“We need a well-balanced, logical policy to support competition, with clear targets and a functional system that assesses the competitive environment as well as a system of fair rewards and punishments for those market players that break rules and laws. I would like to emphasise that any serious decision must be based on the analysis of the real state of the competition in the country. We must not manufacture artificial competition on paper. The purpose of the government is to create the conditions for fair competition and, most importantly, the solution must be consistent and clear for everybody and for businesses first and foremost.”
“One of them involves instituting criminal responsibility for collusions that limit competition – the so-called cartels. There will be a clear definition of what constitutes a cartel. In other words, the anti-monopoly bodies will not be allowed to make any arbitrary, broad interpretations on this score. Private companies will not encounter any additional administrative barriers.”
“We need a model that will ensure Russia’s competitiveness in the modern world, making its economy and financial sector resistant to shocks of all sorts while also raising the living standards of Russian citizens.”
“To be truly competitive, our agro-industrial sector needs high-tech equipment. Today old tractors and combines that have exhausted their service life account for 70%-80% of those in use. According to available estimates, farmers are spending billions of roubles on repairs instead of using these funds to develop their farms. The technical fleet must be reequipped and the scrap must be disposed, all the more so since our mechanical engineers are starting to produce new models and foreign firms are also arriving. Incidentally, we could think about a special programme here, as we have in car making, to encourage the production of modern equipment on our territory.”
“The government has approved a programme to develop competition. Similar programmes are being adopted in the regions. They are aimed at consistently removing all the factors that lead to unjustified price growth, which includes expanding the space for free competition, nationwide as well as on local markets, and preventing the emergence of new monopolies that corrupt the economy and hinder modernisation.”
“We are also now reviewing the enforcement of the new law on protecting competition. Proposals for improving the law are being drafted. Let me emphasise that we see a direct link between an increase in business activity on the one hand and recovery and subsequent stable development on the other. In order for the market to develop, new companies must enter it. And here government policy and the position of major, established businesses are equally important. Of course, it would be naïve to ask you to help create new competition for yourself, but at the same time, you can do much to form a circle of independent suppliers of goods and services around your companies and cut costs thanks to efficient ordering.. You know this practice- it is found throughout the world. The emergence of a full-fledged domestic market and the spread of modern technology and a corporate culture are beneficial to everyone on the whole. And here big business must serve as a kind of engine driving the process”.
“There is another step to promote the development of the market infrastructure, and that step is the passing of a bill on financial instrument taxation. It will remove many formidable obstacles to developing open trade in the traditional key Russian exports-mainly oil, its derivative products, and natural gas.”
"What we need to do is remove the reasons for the monopolisation of particular commodities and service markets. The competition development programme aims at settling just such structural problems."
"The Programme envisions improvement of the legal framework of anti-trust policies. We'll have to clearly and precisely define areas where the Law On Competition should be applied. Not all actions currently formally qualified as breach of antitrust law are really violations. We'll also need to delineate between tough but fair market play and forbidden tricks."
"The sectors where unfair competition has reached a systemic level, directly hurting people's interests and hindering business development, require special attention. I am referring to jet fuel pricing policies, for example, exorbitant fees for connection to power grids, the markets for coking coal and petrochemicals, public utilities and other sectors. We need tailor-made "pinpoint" solutions here. In particular, we need to approve regulations for non-discriminatory access to services of natural monopolies, as well as customs and tariffs regulation measures."
"The Programme also emphasises competition policies aimed at encouraging small businesses. It is an important current economic and social policy issue, because this sector plays a significant role in creating jobs."
"We'll have to work faster on removing administrative barriers hampering the development of entrepreneurship, implementing our earlier decision as well as additional measures. In particular, we needs to work more intensively on building an information support system for businesses, that is, expand and diversify market reports and price indicators published by the authorities. The move will take away, or at least lessen illegal advantages of businesses benefitting from informal contacts with officials."
"Another pressing issue is dealing with the mala fide practice of illegally granting special privileges to companies which are "close" to the federal or local governments, while putting up artificial barriers for their rivals. This often happens when placing federal or municipal orders."
"Our plans to promote competition can be divided into two major blocks. The first block includes protecting competition with a strong anti-trust policy.Proposals include a crackdown on cartels and greater punishment for government and corporate officials for violating competition rules, even up to criminal prosecution. The second block has to do with shaping competitive markets. The Government proposes a systematic action plan for that. Our first priority will be to create a favourable environment for new and effective economic operators."