Overprised Medicine Detected in Russia

| By | Cartel Agreements, FAS Russia

On 13 March 2019, the Prosecutor’s Office of Yakutia, the Ministry of Interior in the Sakha (Yakutia) Republic, and Yakutia OFAS carried out a joint inspection to check whether the law is observed in medicines procurement for medical facilities in the region.

On 13 March 2019, the Investigation Department of the Ministry of Interior in the Sakha (Yakutia) Republic opened a criminal case upon signs of crimes under Clauses “a”, “b” Part 2 Article 178, Part 4 Article 159 of the Criminal Code of the Russian Federation.

Some elements/facts of fraud, 2-4 times overrated prices for medicinal drugs and competition restriction by top executives of “Region-Stolitsa” Ltd., “Med-Market” Ltd., “PharmBaza” Ltd., “NordPharm” Ltd. and Yakutian prevention-and-treatment facilities in the course of competitive bidding and a bid-rigging cartel were exposed.

The total amount of government contracts concluded by cartel members reaches around 3 billion RUB.

Searches are being carried out in commercial organizations – cartel members, medical establishments subordinate to the Ministry of Healthcare of the Sakha (Yakutia) Republic.

Yakutia OFAS opened a case upon signs of concluding an anticompetitive agreement (Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”).

Efficient execution of supervisory functions in the part of fulfilling national projects, including health care, is one of FAS priorities. The Antimonopoly Service will continue controlling this field to make sure that the allocated budgetary funds are spent with maximum efficiency, in view of the social significance and the scope of financing,

emphasized Head of FAS
Anti-Cartel Department Andrey Tenishev.

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