Bill on electronic quota auctions went through second reading by Lower House

The State Duma (the Lower House of the Russian Parliament) has completed the second reading of the amendments to the Federal Law "On Fishery and Conservation of Aquatic Biological Resources" designed to switch quota auctions to an electronic form, reports Megafishnet.com.

According to the Federal Agency for Fisheries (FAF), the introduction of electronic auctions will improve the quality of competition in the fishery industry.

The draft law was prepared in accordance with the Action Plan for the development of competition in the Russian economy and the transition of certain areas of natural monopolies to a competitive market. The bill amends Federal Law No. 166-FZ of December 20, 2004 "On Fisheries and Conservation of Aquatic Biological Resources" with regard to the conclusion of contracts for fishing sites, fishing quota shares and exploitation of aquatic bio resources based on the results of auctions in an electronic form.

Thus, it is planned to improve the bids’ mechanism, increase their efficiency, and reduce the administrative and financial burden on auction participants. It will also ensure information transparency and equal access for legal entities and sole traders to the auctions throughout Russia.

The bill provides for the maintenance of a register of unscrupulous participants, who, having won the auction, subsequently evaded conclusion of the contract. Consideration of the bill in the final third reading is scheduled for April 2021.