The government has finally found a way to encourage healthy competition in the Russian economy. At a government presidium meeting, Prime Minister Vladimir Putin said that price collusion will now lead to criminal, rather than administrative punishment.
"The general logic remains unchanged: we need to create the most favourable conditions possible for our economic players, while protecting the interests of both consumers and businesses. Tough sanctions will be imposed on those who seek to benefit by unfairly taking advantage of the rules of the game, by developing dubious schemes, manipulating the market, blatantly violating the rights of other companies, overrating and maintaining unreasonably high prices and tariffs, and so on," Putin said.
There is one more new provision: the price of a commodity will not be considered a monopoly if it has been formed as part of an exchange auction held under proper conditions and regulations. However, if the domestic price of a product far exceeds the global price as a result of exchange trading without economic justification, it may be considered illegal.
They haven't forgotten about small companies. A legitimate leaser has the right to extend the lease of a government or municipal property without competition or auction.
Finance Minister Alexei Kudrin told Putin that almost all regions have raised the salaries of public sector employees, and the remaining ones will do so by September 1. The federal budget increased pay by 6.5% as of June 1; the regions were also supposed to contribute to these funds. Those that lack resources were promised help, while others were so generous that they exceeded the planned amount.
"The average increase is 6.5%, although some regions that have the resources have raised the salaries of their public sector employees by 10% and even 15%," Kudrin reported to Putin. "Taken together, over 70 billion roubles have been allocated for this purpose."
Minister of Industry and Trade Viktor Khristenko was full of optimism. He said that soon, Russia will be able to take pride in its car industry. According to Khristenko, by 2014, Russia will become Europe's largest car market. Currently, the government trying to lure foreign car makers into the country to build their factories, in order to exchange engine units and transmissions for preferential customs duties. Agreements have already been signed to this effect with the Ford Sollers Alliance, AvtoVAZ's Renault-Nissan, GM and Volkswagen.