OREANDA-NEWS. On 12th March 2008, the 9th Arbitration Appeal Court sanctioned the amicable settlement between the Federal Antimonopoly Service (FAS Russia) and "Uralkalii" OJSC.

Earlier FAS Russia recognized that "Uralkalii" OJSC violated Clause 1 Part 1 Article 10 of the Federal Law "On Protection of Competition" (abusing dominant position) and issued a determination, that specifies the list of actions to be taken in order to eliminate the violations. In addition, FAS Russia, based on the materials presented by "Uralkalii" OJSC, issued a determination requesting the company to transfer to the federal budget the income in the amount of 62 165 483 Rubles, obtained due to antimonopoly violations.

"Uralkalii" OJSC violated the law by fixing monopolistically high prices on potassium chloride supplied to the consumers in 2007.

Under the amicable settlement:

- "Uralkalii" OJSC recognizes that its actions violated Clause 1 Part 1 Article 10 of the Federal Law "On Protection of Competition" and shall not undertake unjustified actions to terminate or reduce production of potassium chloride without prior approval of the antimonopoly authority. In addition, the company shall present quarterly to the antimonopoly authority, upon a request of FAS Russia, the information regarding the current factory gate prices for potassium chloride and the volume of supply of potassium chloride for the Russian customers as well as export of potassium chloride.
- within three months upon the date when the Court sanctioned the Amicable Settlement, the company undertakes to transfer to the federal budget the income obtained due to antimonopoly violations - 49 mln Rubles.
- in every calendar year, "Uralkalii" OJSC must sell at least 10% of potassium chloride offered to the domestic customers through the exchange, on the basis of an on-going two-way auction.
- FAS Russia jointly with "Uralkalii" OJSC will devise recommendations on organizing exchange trading with potassium chloride in due consideration of the antimonopoly legislation.

The amicable settlement includes two appendices. In particular, the appendix on calculating the income, obtained by "Uralkalii" OJSC as a result of antimonopoly violations. The appendix contains confidential information and, therefore, cannot be disclosed.