Kosinov, V. A. Abolition of Unitary Enterprises and a Measure to Increase Competition in Russia

Abstract: Empowering business entities is one of the key problems of developing competition on various products markets unitary enterprises of different levels receive certain preferences from the government, thus obtaining full control over their respective product markets without making any effort to create a high-quality product that the consumer needs. However, starting with the first attempts to reform the public and municipal property management system made in 1999, the situation has not changed much. Currently, in order to increase the competition and to create equal opportunities for all the business entities, it is necessary to abolish such entities, except certain specific sectors access to which must be limited for the country’s security reasons. To do that, it is necessary to make the required changes to the legislation because for over twenty years the work of such companies did not just low down the economic development but also resulted in significant violations of the constitutional provisions on the support of competition and prevention of economic activities aimed at monopolization and bad-faith competition. The methodological basis for this research is made up from general scientific and specific scientific methods of research in to social processes. In this research, the author used the systematic and structural, comparative legal, historical, logical, formal legal approaches, their application enabled the author to examine the above problem in its entirety, comprehensively and objectively. Despite the reducing number of such enterprise, at this time the number of violations of anti-monopoly laws by such entities has grown. The sectors where their influence was especially negative are utilities, transport and public parks and gardens, personal and consumer services, funeral arrangements, i.e. the sectors which require obtaining approvals and permits. Up until now, the inefficient management of the public and municipal assets by unitary enterprises prevents private entities from entering certain markets.

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