Efficient re-registration of titles in this segment would mean cardinal change of the approach. Citizens qualified for such re-registration and their heirs should be given a fixed period (e.g., 1 year) to send a request for re-registration of their title (according to the established template) to the State Register Agency (local administration may be an option) territorial branch in the jurisdiction of the land plot location (including sending via e-mail).
Government agencies shall keep a special register of such individuals and land plots and issue a special notification about receiving the above described requests.
The State Register agencies should have all the necessary authorities to perform the actions required for re-registration of titles subject to agreement with the individual having requested such re-registration (cadastral valuation and delineation, issuing the required inquiries, etc.) and then the re-registration itself. The applicant shall cover all the required expenses.
The following needs to be developed and approved for this purpose:
- socially acceptable tariffs for all government services in this sphere which should be provided to everyone who would like to use the above described mechanism;
- methodology for the State Register agencies work, for interaction with other bodies and with individuals.
Taking into account the existing practice of land title registration, certain elements of legal relations (may be – for a certain period) maybe withdrawn from under such regulations due to big number of errors and mismatches in title documents. The State will bear all the efforts for further title registration of titles and the individual will cover the costs.
The “pros” of the proposed options are the following:
- significant facilitation of real estate market expansion;
- elimination of acute social problems in the sphere of land title registration;
- decrease of corruption level in real property titles registering agencies;
- decrease the level of social costs of monopolistically high prices for territorial land survey and stock-taking services;
- government capability of creating systems for land surveying and stock-taking which would adequately respond to the economic needs and have socially acceptable prices for their services.
The weak points: limited capabilities of State Register network; possibility for abuse on behalf of citizens; need for additional state funding.
This methodology could be tested in certain regions selected based on high level of effective demand of population and capabilities of territorial agencies of the State Register network.
In a similar way a possibility could be stipulated for legal entities using their land plots under the terms of permanent (unlimited) use: in case such entity does not apply for the land title registration, the lease agreement shall be executed, when the executive agencies draft the required documents and the expenses are covered by the tenant.
Institutional Problems In addition, it looks feasible to consider introduction (or using in a wider scale) the installment scheme for buying out the leased land plots. With that, buying out the most valuable (expensive) land should be delayed until their prices go up (currently land plots are significantly underestimated). Today land privatization may be used as a way to get additional income into the budget, but tomorrow it may result in systematic problems, resolution of which may take decades.
6.4. Regulation of competition limiting concerted practices in 2008–Effective Russian anti-monopoly legislation describes the entire diversity of competition limiting concerted practices consequences causing damage to consumers or players in the adjacent markets. According to Article 8 of Law No.135 «”On Protecting Competition”, concerted practices of commodities markets participants shall be include all actions the outcomes of which are in line with the interests of every participant of the market under the following conditions:
– their actions are known to each other in advance;
– these actions are not resulting from the circumstances which have equal impact on all commodities markets participants.
According to Article 11, competition limiting cartels or concerted practices shall be prohibited in case they lead or may potentially lead to:
1) establishing or maintaining certain prices, rebates, mark-ups or premiums;
2) increasing, reducing or maintaining prices at auctions;
3) dividing the commodities market by territories, volume of sales or purchases, range of sold commodities or composition of sellers or buyers (customers);
4) economically/technically unjustified refusal to execute contracts with certain sellers or buyers;
5) imposing unfavorable terms and conditions in counterparty, or imposing terms and conditions which are not related with the subject of contract;
6) economically/technically/in any other way unjustified fixation of prices (tariffs) for one and the same commodity;
7) reducing or terminating production of goods which are currently in demand or which have already been procured in the conditions when such goods may be profitably manufactured;
8) impeding other economic operators to either enter or exit a certain commodity market;
9) establishing professional or other types of associations membership (participation) terms in case such terms lead or may potentially lead to preventing, limiting or eliminating competition.
According to statistical data anti-monopoly agencies in the US, EU and Russia identify not more than several dozens of violations per year. Even a smaller number of violations are terminated after they are contested in courts.
The most effort-intensive stage in the process of identifying the facts of competition limiting concerted practices is the need to provide evidence that all the participants knew about their actions. According to p. 2 of the Resolution No.30 of the RF High Arbitration Court Plenum of June 30, 2008 “On Some Issues Arising in Connection with Arbitration Courts Applying Anti-Monopoly Legislation”, which talks about concerted practices, the fact of actions being committed by different market players simultaneously and consistently without any external reasons may be viewed as such evidence. It should be noted that the extent of RUSSIAN ECONOMY IN trends and outlooks consistency and uniformity of actions shall be defined by the respective anti-monopoly agency, and in case its decision is challenged – by the respective Arbitration court.
For example, the judgment of Altaisky Region Arbitration Court confirmed the lawfulness of conclusions made by Altai territorial division of FAS (Federal Anti-Monopoly Service) about the activities of OJSC Rosneft – Altainefteprodukt and OJSC Gazpromneft-Altai constituting a price collusion – on the basis of two criteria: practically simultaneous increase of different grades of gasoline prices by the same value in the territory of Barnaul city from April 3 until May 30, 2009.
In 2008–2010 anti-monopoly agencies of Russia made decisions on such types of violations as coordinating economic activities, impeding entrance to / exit from the market, geographical division of markets, collusion at auctions, price collusion and refusal to act independently by executing exclusivity agreements for supplying products / rendering services.
Table Ascertainment of competition limiting concerted practices in 2008–Investiga- Number of Type of Type of Participants Commodity tion initi- cartel parviolation market ated by ticipants 1 2 3 4 5 6 1 LLC Sibneft-Krasnoyarsknefteprodukt, LLC price collu- petroleum regional FAS Fortuna Plus, OJSC Krasnoyarsknefteprodukt sion products 2 OJSC Oskolneftesnab, LLC Starooskolskaya price collu- petroleum regional FAS neftebaza, OJSC Belgorodnefteprodukt sion products 3 LLC Kurskoblnefteprodukt, LLC Alexiya price collu- petroleum regional FAS sion products 4 OJSC NK Rosneft – Altainefteprodukt, OJSC price collu- petroleum regional FAS Gazpromneft-Altay sion products 5 LLC LUKoil-Severo-Zapadneftprodukt, LLC price collu- petroleum regional FAS Pskovskaya Toplivnaya Kompaniya, LLC sion products Pskovnefteprodukt 6 LLC LUKoil-NIzhnevosknefteprodukt, LLC price collu- petroleum regional FAS Gazprom Dobycha Astrakhan sion products 7 OJSC Khabarovsknefteprodukt, LLC RN- price collu- petroleum regional FAS Vostoknefteprodukt sion products 8 CJSC Electron coordination fiscal regis- regional FAS of economic ters sales activities 9 LLC LUKoil-Yugnefteprodukt, OJSC NK price collu- petroleum regional FAS Rosneft-Stavropolye, sion products LLC Bashoil-KMV, LLC Stavneft, LLC PKP Stavpromkomplekt 10 LLC TV&Radio Company “Luch”, CJSC TV- price collu- cable TV regional FAS Service, CJSC RMA Telehone”, sion Individual Entrepreneur Kakurin A.A.
11 Federal State Unitary Enterprise Scientific coordination dairy prod- regional FAS pilot integrated dairy plant named after Vere- of economic ucts schagin, CJSC PTK “Severnoye Moloko”, activities OJSC Sukhonsky Dairy Products 12 CJSC Gaspromneft – Kuzbas, OJSC price collu- petroleum regional FAS Tomsknefteproduct sion products 13 OJSC SK Eni, LLC Novaya Lizingovaya coordination leasing ser- regional FAS Kompaniya, CJSC Moscow Commercial Bank of economic vices Mosprivatbank activities Systematization of data published at FAS of Russia website at www.fas.gov.ru Section 6.
Institutional Problems (continued) table 1 2 3 4 5 6 14 LLC Rusfinans Bank, OJSC GSK Yugoriya coordination debt financ- regional customer of economic ing activities 15 9 radio-taxi market players price collu- radio-taxi regional customer sion 16 OJSC Orenburgnefteprodukt, LLC TK Petrol price collu- petroleum regional FAS sion products 17 LLC UniMilk, CJSC Tandem coordination dairy prod- regional FAS of economic ucts activities 18 Bank Societe Generale Vostok, OJSC Rosno, coordination consumer regional customer of economic lending LLC Renaissance Strakhovaniye Group, activities СCJSC Soyuznik 19 Retail chains AkBarsTorg, Magnit, Patterson, coordination retail regional FAS Perekryostok, Optovik of economic activities 20 CJSC Refenergo, CJSC Pool-Energo coordination electric regional FAS of economic power activities 21 Bank VTB 24, 12 insurance companies coordination mortgage national FAS of economic lending activities 1 OJSC Silvinit, OJSC Uralkaliy price collu- potassium national consumers, sion chloride power bodies 2 OJSC Aviakompaniya Avis-Amur, OJSC collusion at medical aid regional FSB Aviakompaniya Vostok auction aviation 3 LLC Agroremstroy, LLC MonolitStroy, collusion at metal roof- regional consumers auction ing mainteLLC Construction company SMU-nance 4 8 wholesale companies collusion at supplying regional regional auction vegetables to administraeducational tion institutions 5 IKEA Mos Company coordination leasing space regional consumers of economic activities 6 OJSC Bassol,LLC Promsol exclusivity salt regional consumers contract 7 Sverdlovsk railway, CJSC Visavi exclusivity railway cars regional FAS contract delivery and cleaning 8 OJSC Izhmash Concern, LLC Deryabin- exclusivity non-military national FAS Oruzhiye contract weapons 9 OJSC Makhachkalinsky Vinzavod, LLC Pre- exclusivity alcoholic regional FAS mium contract products 10 OJSC Center for Rescue and Environmental coordination servicing national consumers Operations of economic hazardous activities industrial sites 11 OJSC Center for Rescue and Environmental market divi- servicing regional FAS Operations, sion hazardous industrial State Institution for Moscow Region Mosoblsites pozhspas 12 CJSC Delta Credit Commercial Bank coordination mortgage regional FAS of economic lending activities 13 OJSC Baltika Brewery and 6 distributors market divi- beer whole- regional FAS sion sale 14 OJSC Promsvyazbank and 12 insurance com- coordination debt financ- regional FAS panies of economic ing activities RUSSIAN ECONOMY IN trends and outlooks (continued) table 1 2 3 4 5 6 15 CJSC Penzanefteprodukt, LLC LUKoil price collu- petroleum regional Nizhnevolzhsknefteprodukt sion products 16 LLC Soda-Chlorat, LLC KhimStandard market divi- potassium regional customer sion chlorate 17 OJSC AK Bars Bank, Open Joint-Stock Insur- exclusivity auto loan regional FAS ance Company Rossiya contract 18 OJSC Electroapparat, LLC Trading House coordination automatic national competitor Electroapparat of economic circuit activities breaker 19 LLC OPUS Trading House coordination linoleum and national FAS of economic floor coating activities wholesale 1 CJSC TechnoNIKOL, LLC TechnoNIKOL - market divi- construction national customer Construction Systems sion materials 2 CJSC Rusperforator, Federal State-Owned price collu- commercial national customer Enterprise Permsky Porokhovoy Zavod, Fed- sion explosives eral State-Owned Enterprise Plant named after Ya. M.