Russian road firms exposed in $8.7M cartel scheme to rig state contracts

A secret pact between two firms let them manipulate bids and drain public funds. Now, Russia's antitrust watchdog is cracking down.

, and Administrator

2026 April 21 . 6:20 AM

1 min read

The image shows an old black and white photo of a road with a fence running along it, surrounded by... — The image shows an old black and white photo of a road with a fence running along it, surrounded by trees and buildings in the background. At the top of the image, there is some text which reads "Krasnoyarsk, Russia, circa 1900".

Ivanovo Region Prosecutor's Office Uncovers Signs of Cartel Collusion Between Two Road Maintenance Firms

Russian road firms exposed in $8.7M cartel scheme to rig state contracts

The regional prosecutor's office has identified evidence of a cartel agreement between two companies responsible for road upkeep, the supervisory agency's press service reported.

Investigators found that Soyuz Avtodor LLC and DEP No. 17 LLC conspired to divide state contracts for road maintenance between themselves. The scheme involved one company deliberately underbidding contracts to ensure the other won the auction, according to the statement.

This arrangement allowed one of the firms to secure two government contracts in 2024 at near-maximum prices, undermining fair competition. Prosecutors estimate the total value of the contracts at no less than 800 million rubles ($8.7 million).

The findings of the prosecutor's investigation have been forwarded to the Federal Antimonopoly Service (FAS). "Upon review, the agencies' actions were found to violate antitrust laws, exhibiting clear signs of cartel collusion," the prosecutor's office emphasized.