MOSCOW, August 19 (RAPSI) – The Federal Antimonopoly Service (FAS) of Russia has detected a potential cartel operating across a greater part of the country’s territory to prop up the prices at auctions for procurement of pharmaceuticals and other medical products for state and municipal needs, the watchdog says in its statement on Friday.

The agency suspects several large Russian companies to be cartel participants.

According to FAS, price fixing was detected at more than 700 auctions, whereas some of the defendants have a record of being involved in similar cases.

“Cartels harm both the state budget and directly citizens. Cahoots existing in such a socially significant sphere as public health result in a growth in prices of drugs and medical services. Detecting and suppressing such cartels is the FAS primary goal,” Andrey Tsarikovsky, a FAS Deputy Head, said.

According to the antimonopoly watchdog, there were registered no or minimal (0.5% to 2%) decreases in the initial ceiling contract prices of pharmaceuticals and medical products, where these companies participated in procurement.

“In spite of clear indications of cahoots, no non-compliance reports were submitted by healthcare organizations in relation to these facts. No other sector today is so exposed to such a massive influence of anticompetitive practices,” Andrey Tenishev, the head of the FAS Anti-cartel Directorate, stressed.

FAS is ready to fine the cartel members in the nearest future.