Russia’s record high 2011 harvest of sugar beet, sunflower seeds, and grain has exposed serious problems in the processing industry. The problems of storage, purchase, transportation, processing, and marketing of agricultural products, raw materials, and foods were discussed in terms of antitrust provisions at a meeting of the Expert Agribusiness Council under the Federal Antimonopoly Service (FAS).

The capacity of almost all processing facilities proved to be insufficient to adequately store and process the record high harvest. The situation was further aggravated by inadequate interaction between the farmers and government agencies.

The Council members were also informed about the details of the third antitrust law package recently signed by President Dmitry Medvedev. It includes amendments to the laws on competition, natural monopolies, Russia’s Administrative Offenses Code and several other documents worked out by the regulator.

“Although the country’s antitrust laws are sufficiently liberal, the third antitrust package reinforces responsibility for the most serious offense, cartel collusion,” noted the regulator’s deputy head, Andrei Tsyganov.