What is the philosophy of natural monopolies in Russia?
The notion of natural monopolies in Russia implies a monopolistic way of producing goods and services, which is regarded as the most feasible and advantageous in terms of minimum public costs. Such activities are state-regulated. For example, it would not be feasible to compete in the transmission of electric energy or in the pipeline system, as it’s hard to imagine a new alternative system in this sphere, given the big distances in Russia. The Committee on Natural Monopolies and the Federal Antimonopoly Service (FAS) regulate the monopolistic activities and the access of other producer/consumers. The energy system used to be state-regulated, but recently, in 2003, began to undergo a gradual reform, and, as a result, the following monopolistic sectors were outlined: energy transmission, energy dispatching; the state controls 100% of nuclear energy and 51% of hydro power generation development. One of the common features of Russia is its massive presence in the so-called strategic secto
