Round table discussion: Antimonopoly regulation in the sphere of environmental management.

A round table discussion on the subject of Antimonopoly regulation in the sphere of environmental management was held as part of Yenisei political-legal readings on September 16, 2016. The moderators of the round table were Vice President of the Central Siberian Commercial-industrial chamber Union, honored employee of the antimonopoly bodies in Russia Eugenie Lvovich Luzhbin Doctor of Juridical sciences, professor, head of the department of commercial, business and financial law in LI of SFU Irina Victorovna Shishko.

The representatives of Russian Management of the Federal Antimonopoly Department in Krasnoyarsk, the representatives of Arbitration court of Krasnoyarsk region and the Third Arbitration appellate court, the ones of Central Siberian Commercial-industrial chamber and CentrSibSubsoil participated at the round table discussion. Also professors of commercial, business and financial law department, professors of labor and environmental law department, institute of mining LI SFU were engaged.

A lot of questions about efficiency and practice of application of norms of branch legislation with antimonopoly orientation were considered. The ones concerning subsoil use, forest management and also questions in the sphere of hunting and fishery were reviewed.

During active reports discussion the participants assessed the level of competition in specific branches and its limiting objective and subjective factors.

The round table moderator – Irina Victorovna Shishko – presented welcome speech, outlining relevance and necessity of covering chosen for the round table discussion theme.

Eugenie Lvovich Luzhbin continued welcome of the participants, characterizing main orientations and issues of antimonopoly regulation in the sphere of environmental management.

“The sphere of environmental management is one of the most essential ones which influence economical stability and development. Its exceptional significance is determined by the fact that natural resources such as subsoil, forest, objects of the animal world, aquatic and other biological resources, including land, create essential raw material base for industrial and agricultural functioning. Among them there are natural resources existing for organization of processing manufacture, oriented at import substitution. Efficiency of economy in general depends on the way the sphere of environmental management is being developed. In its turn, sector of environmental management in economy entirely depends on competition condition in its sphere.

Not by chance legislator pays special attention to antimonopoly legislation development and improvement, including sphere of environmental management. Antimonopoly requirements are established in almost any branch legislation (subsoil legislation, hunting legislation, forest relations legislation, fishery legislation)” – Eugenie Lvovich indicated.

“Unfortunately, requirements, formulated by antimonopoly legislation, frequently are not implemented. It is not a secret that negotiations on trades, including formation of cartel agreements, are common practice. Cases of engagement of branch bodies officials in anticompetitive agreements on trades are not uncommon” – the speaker stated.

Further he characterized some principal issues: “In such core sphere of economy as subsoil use the Federal management of public subsoil fund body does not have a right to establish the maximum size of subsoil area, quantity of areas and maximum reserves of mineral resources, provided for usage. Moreover, submission of the exclusive right to conclude any state contract with Open Joint Stock Company “Rosgeologiya” without auction will lead to monopolization of the market. It contravenes with the article 34 Constitution of the Russian Federation, creates circumstances for corruption (commercial bribery) and for inefficiency of the budget use. This happens because of increase of the management expenses and consequently reduction of expenses for geological explorations. In its turn, this can lead to substandard (wrong) assessment of mineral resources volume in subsoil.

Analogical examples can be introduced in other branches of environmental management.

     Translated by Svetlana Zakharova

2nd course, Group 15-06