OREANDA-NEWS. On November 07, 2007 the Moscow Arbitration Court dismissed the claim of the "Mikoyanovsky Meat-Processing Plant" to recognize invalidity of the decision of the Federal Antimonopoly Service (FAS Russia) on forced reorganization of the company, reported the press-centre of FAS Russia.

Under Article 6 of the Federal Law "On Specificity of the Power Industry in the Period of Transition, and on Amendments to Some Legislative Acts of the Russian Federation while Some Legislative Acts Lost Effect due to Passing the Federal Law "On the Electric Power Industry", from 1st April 2006 legal persons and sole traders cannot combine electricity transmission and operational dispatch management activities in the electric power industry with electrical power production and sales.

Responsibilities for enforcement of Article 6 lay with FAS Russia (Clause 1 of the Regulations on control of observance the ban for combining electricity transmission and operational dispatch management activities in the electric power industry with electrical power production and sales by legal entities and sole traders).

Under Clause 3 of the Regulations, an economic entity combining the above-described activities must send a notification to the antimonopoly authority.

On 28th March 2007, FAS Russia received a notification from the "Mikoyanovsky Meat-Processing Plant" CJSC on observing the regulations on activities of economic entities involved in electric power supply to satisfy own production needs.

According to the presented document, the "Mikoyanovsky Meat-Processing Plant" CJSC was an economic entity combining electricity transmission with energy sales.

The documentation submitted by the petitioner also indicated that the "Mikoyanovsky Meat-Processing Plant" CJSC owned certain electricity network objects and was involved in selling electrical energy to other economic entities.

Under Article 6 of the Federal Law "On Specificity of the Power Industry in the Period of Transition…", an economic entity cannot simultaneously possess, under property rights or under any other lawful title, any property directly used for transmitting electricity or operational dispatch management activities in the electric power industry, and property directly used in selling and purchasing electrical energy.

Therefore, activities of the "Mikoyanovsky Meat-Processing Plant" CJSC fall within the ban set by Article 6, and do not come under the terms of exceptions specified in the Article.

On these grounds, FAS Russia recognized that the company violated the Federal Law "On Specificity of the Power Industry in the Period of Transition…" and made a decision on its forced reorganization.

The "Mikoyanovsky Meat-Processing Plant" CJSC disagreed and appealed to the Moscow Arbitration Court. The Court, however, found the company's argumentation unsound and, therefore, confirmed the rightness of the Antimonopoly Service.