The Cabinet supported the increase in fines and maximum terms of imprisonment for cartel conspiracies

The government has supported higher fines and an increase in the maximum prison term for bidding cartels that unreasonably change or fix the purchase price. The relevant amendments to Art. 151 of the Code of Criminal Procedure and art. 178 of the Criminal Code (CC; articles regulating the restriction of competition) on August 7 was approved by the Cabinet of Ministers Commission on legislative activities (the review and the document are at the disposal of Vedomosti). The bill was introduced by the Federal Antimonopoly Service (FAS) back in 2019. On December 15 last year, the State Duma adopted it in the first reading, subject to revision to the second. We are talking about bidding, “mandatory by law” – the purchase of the state or state-owned companies (44-FZ and 223-FZ).

The amendments propose a clarification that a cartel that caused an increase, decrease or maintenance of prices at auction can be punished with forced labor up to five years with restrictions on positions and activities or imprisonment from three to five years with a fine of 600,000 to 800,000 rub. or in the amount of the convicted person’s salary for a period of up to three years. If the conspiracy is committed by an organized group, causing especially large damage or extracting especially large income, then forced labor is proposed to be extended for up to five years, and imprisonment – up to six. The fine, according to the amendments, in this case will be from 2 million to 6 million rubles.