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Khabarovsk FAS uncovered an anticompetitive agreement among egg producers

The supervisory authority is now considering administrative proceedings against the organizations.

The Khabarovsk Region Directorate of Russia’s Federal Antimonopoly Service (FAS) has identified signs of antimonopoly law violations in the actions of the region’s largest egg producers. According to the agency’s website, the parties involved in the collusion included Khabarovsky Poultry Breeding Plant JSC, Komsomolskaya Poultry Farm JSC and DV Nevada LLC, the owner of a local retail chain.

The FAS investigation found that the parties to the agreement had acted to restrict product shipments to the Agrotorg LLC retail chain. This gave the DV Nevada chain a competitive advantage.

The supervisory authority is now considering whether to hold the organizations administratively liable under Article 14.32 of the Russian Code of Administrative Offences. The FAS statement specifies that the producers against which proceedings have been initiated are the region’s only producers and meet around 90% of Khabarovsk Region’s demand for chicken eggs.

At the end of April 2024, Russia’s FAS reported that more than 10,000 organizations in 27 regions of the country had signed agreements with the authorities to stabilize prices for socially important food products. The agreements cover staple products: meat, fish, chicken, eggs, cereals, flour, butter and oil, milk, tea, bread, sugar, salt, and some vegetables and fruit. Participants include 33 producers, 32 suppliers and 10,533 retail organizations.