OREANDA-NEWS. On December 11, 2007 VTB 24 CJSC voluntarily reported to the Federal Antimonopoly Service (FAS Russia) on competition-restricted agreements between the bank and some insurance companies, which are forbidden under the antimonopoly legislation of the Russian federation, reported the press-centre of FAS Russia.

The bank withdrew from the agreements and presented to FAS Russia available information about the agreements in question.

In its statement, VTB 24 informed about entering into agreements with 17 insurance companies - "Military-Insurance Company" OJSC, "VTB Strakhovanie Ltd. (previously - "Strakhovoi Capital" Ltd.), " Regional Insurance Company of Kuzbass" Ltd., "Ingosstrakh" Open Joint-Stock Insurance Company, "Moscow Joint-Stock Insurance Company" CJSC, "PARI" Insurance Company" OJSC, "Russky Mir" Insurance Company" OJSC and 10 insurance companies of the group of "Rosgosstrakh" OJSC. The agreements related to insurance of VTB 24 borrowers and to additional arrangements that excluded provisions which contravened with the Federal Law "On Protection of Competition".

Currently "Russky Mir" Insurance Company" OJSC confirmed voluntary refusal to participate in the agreements with VTB 24 CJSC regarding insurance of the bank borrowers and presented available information regarding the agreements in questions. The agreements provided arrangements between the credit organizations and insurance companies on coordinating residential mortgage rates. Concluding such agreements could have led to setting and maintaining prices on insurance services which directly violates Article 11 of the Federal Law "On Protection of Competition".

Therefore, the bank and the insurance company "Russky Mir" took advantage of the administrative leniency programme under Article 14.32 of the Code on Administrative Violations of the Russian Federation (CoAV RF).

According to the notes to Article 14.32 of CoAV RF, a person that voluntarily reported to the antimonopoly authority on entering into a competition-restricting agreements, forbidden by the antimonopoly legislation of the Russian Federation, and refused to take part or to further participate in such an agreement as well as presented the available data (information) to enable establishing the fact of such an agreement, is discharged from administrative liability.

FAS Russia will decide whether VTB 24 CJSC and "Russky Mir" Insurance Company" OJSC should be relieved of administrative liability after it examines the antimonopoly case.