Kremlin to beef up antitrust body

MOSCOW (Reuters) - Russia will beef up its anti-trust body and grant it sweeping new powers to protect competition and prevent price-fixing, a top Kremlin aide said on Tuesday.

Kremlin Chief Economic Aide Arkady Dvorkovich told the Reuters Russia Investment summit the plan was to build up the Federal Anti-Monopoly Service, known as FAS in Russia, into one of the government's most powerful agencies.

"FAS will be one of the very strongest structures in the system of executive power with wide authority," he said at the event, held at Reuters Moscow office.

Russia's anti-monopoly service has been under the spotlight since Vladimir Putin, Russia's powerful Prime Minister, demanded the anti-trust service become more active.

Putin wiped more than $8 billion off the market capitalization of Russian coal and steel firm Mechel (MTL.N: Quote, Profile, Research, Stock Buzz) in July when he accused the New York-listed company of charging too much on the domestic market and being involved in tax evasion.

FAS ordered the company to cut prices and sign long-term supply deals for coking coal with its main local customers.

"The Mechel case is just the first big case in the history of anti-monopoly regulation," Dvorkovich said.

"This case was a clear signal to everyone, to the state, to companies, to investors that we have the rules to the game and that everyone should stay within legally established procedures," he added.

FAS has also been asked by senior Russian officials to work out ways in which Gazprom (GAZP.MM: Quote, Profile, Research, Stock Buzz), Russia's biggest company and the world's biggest gas supplier, could offer more access to its gas pipelines.

(Reporting by Guy Faulconbridge; Editing by Erica Billingham)