OREANDA-NEWS. March 12, 2008. the Federal Antimonopoly Service (FAS Russia) fined "RZhD" OJSC, and its branch - Dalnevostochny [Far East] Railways (DVZhD) for violating Article 51 of the Federal Law "On Protection of Competition". Under Article 19.5 of the Code of Administrative Violations, this offence is punishable with 500 000 Rubles fine.

Earlier FAS Russia recognized that "RZhD" OJSC, and a branch of "RZhD" OJSC - Dalnevostochny Railways (DVZhD) violated Clause 1 Article 5 of the Law "On Competition and Restricting Monopolistic Activity on the Goods Markets".

The companies violated the law by creating obstructions for the access of "Zolotoe Zveno" OJSC to the market of rail freight service in a through international transportation across the Russian-Chinese border - the Kamyshovaya - Khunchun international border-crossing point, controlled by "Zolotoe Zveno" OJSC

Having considered the case, FAS Russia issued a determination to "RZhD" OJSC requesting it to termination the antimonopoly violations.

"RZhD" OJSC disagreed with the decision of the antimonopoly authority and appealed. In October 2005, the Moscow Arbitration Court delivered a judgment in favour of "RZhD" OJSC, and in December 2005 the 9th Arbitration Appeal Court sustained the judgment of the court of first instance. In April 2006, however, the Federal Arbitration Court of the Moscow District remanded the case for reconsideration.

In course of the reconsideration, the courts of all instances found the FAS Russia's decision and determination valid and justified.

Despite the court rulings, the came into force, "RZhD" OJSC, in the person of its branch Dalnevostochny Railways (DVZhD), failed to timely fulfill the determination issued by a governmental agency with the state control functions.

The above antimonopoly violations are administratively liable under Part 2.2. Article 19.5 of the Code of Administrative Violations of the Russian Federation (imposing fines).

"RZhD" OJSC, in the person of its branch Dalnevostochny Railways (DVZhD) was imposed the maximum fine, specified by Article 19.5, which amounted to 500 000 Rubles.