OREANDA-NEWS. September 04, 2007. "RZhD" OJSC fulfilled the determination of the Irkutsk Regional Office of the Federal Antimonopoly Service (FAS Russia) according to the ruling of the Forth Arbitration Appeal Court of 13th August 2007, reported the press-centre of FAS Russia.

Earlier the Irkutsk OFAS Russia recognized that the East-Siberian Railway - a branch of "RZhD" OJSC violated the Federal Law "On Protection of Competition" and requested to eliminate the violations.

The company violated the law by giving wire instructions (№ 3328 of 25.10.2006 and № 4029 of 31.10.2006) that set direct restrictions for exporting round timber upon the organizations, which did not have the status of a timber terminal. Therefore, a branch of "RZhD" OJSC created discriminatory conditions for entry to the goods market related to organization of round timber transportation by railway.

To eliminate the revealed violation of the antimonopoly legislation, the Irkutsk OFAS Russia requested "RZhD" OJSC to cancel the above wires.

Considering the decisions and determination of the Irkutsk OFAS Russia unlawful, "RZhD" OJSC filed a complaint to the Irkutsk Regional Arbitration Court requesting to annul them.

On 27th March 2007, the Court of First Instance satisfied the request of "RZhD" OJSC. Grounds for the court judgment: the case materials did not contain materials confirming that by issuing the wire instructions "RZhD" OJSC also abused its dominant position on the market of services on round timber transportation.

The Irkutsk OFAS Russia appealed against the court ruling to the Forth Arbitration Appeal Court.

On 13th August 2007, the Arbitration Appeal Court ruled to allow the appeal of the Irkutsk OFAS Russia and и отмене решения the Court of First Instance on the following grounds:

- The wire instructions violate the rights of indefinite circle of persons - economic entities by restricting their degree of freedom by acting through definite circle of other economic entities that have the status of a timber terminal.

- The wire instructions set discriminatory conditions when an economic entity or several economic entities are put in an unequal position in comparison with other economic entities.

Therefore, the Appeal Court confirmed validity of the position of the regional antimonopoly Тoffice towards the branch of "RZhD" OJSC. "RZhD" OJSC must fulfill the determination of the Irkutsk OFAS Russia and cancel the wire instructions.