OREANDA-NEWS. On 4 and 6th March 2008, the Moscow Arbitration Court confirmed validity of the decision passed by the Moscow office of the Federal Antimonopoly Service (office of FAS Russia) in two cases against the "Banque Societe Generale Vostok" Commercial Autonomous Bank CJSC (BSGV).

Earlier the Moscow OFAS Russia recognized that BSGV violated Parts 9 and 12 Article 35 of the Federal Law "On Protection of Competition" and fined it 250 000 Rubles.

On 1st June 2007, BSGV and the "Military-Insurance Company" OJSC entered into a co-operation agreement on the programs for crediting physical person to buy vehicles.

In addition, on 2nd April 2007 the Bank and "ATz [autocentre] na Leninskom" Ltd. entered into a co-operation agreement in terms of the programs for crediting purchase of vehicles, aimed at selling vehicles to the customers of ATz na Leninskom" Ltd. with partial payment out of the credit offered by the Bank.

Under Parts 9 and 12 Article 35 of the Federal Law "On Protection of Competition", financial organizations must notify the federal antimonopoly authority about all agreements, concluded in any form, with any organizations within 15 days after an agreements is concluded, except the agreements specified in Clauses 1-3 Part 9 Article 35 of the Law.

The agreements in question are not covered by any exception described in Clauses 1-3 Part 9 Article 35 of the Federal Law "On Protection of Competition"; therefore, the Bank should have forwarded notifications on entering into such agreements.

Therefore, BSGV violated Parts 9 and 12 Article 35 of the Federal Law "On Protection of Competition", liable under Article 19.8 of the Code of Administrative Violations of the Russian Federation.

BSGV appealed against the resolutions on imposing fines to the Moscow Arbitration Court. On 4 and 6th March 2008, the Moscow Arbitration Court recognized that resolutions of an administrative offence and imposing fines in two cases against BSGV as valid, and dismissed the BSGV claims.