OREANDA-NEWS. June 09, 2008. The Federal Antimonopoly Service (FAS Russia) initiated a case against "Uralsevergaz - NGC" CJSC for violating Part 1 Article 10 of the Federal Law "On Protection of Competition" (imposing unfavorable contracts conditions). The case hearing is scheduled on 30th June 2008, reported the press-centre of FAS Russia. 

The case was initiated upon a petition of "Ural Gas Networks" OJSC.

FAS Russia established that "Uralsevergaz - NGC" CJSC currently is the only supplier of natural gas in the Sverdlovsk Region and occupies dominant position on the gas supply market in the Sverdlovsk Region with the market share 65%. "Ural Gas Networks" OJSC owns boiler-houses in the Sverdlovsk Region and uses natural gas as fuel.

To receive gas in 2008, "Ural Gas Networks" OJSC sent a letter to "Uralsevergaz - NGC" CJSC on appropriate contracts for supplying gas. "Uralsevergaz - NGC" CJSC sent the contracts for supplying natural gas to "Ural Gas Networks" OJSC. As it was established, the contracts included economically and technologically unfounded conditions unfavourable for "Ural Gas Networks" OJSC. In this connection the company sent the Protocols of Disagreements to the contracts for gas supplies to "Uralsevergaz - NGC" CJSC. However, "Uralsevergaz - NGC" CJSC rejected the requirements of "Ural Gas Networks" OJSC to exclude unfavourable conditions from the supply contracts.

Reference:
Article 10 of the Federal Law "On Protection of Competition" forbids actions (lack of actions) by an economic entity that has dominant position, which result or may result in preventing, restricting or eliminating competition and (or) infringing the interests of other persons by imposing unfavorable contract conditions.

Therefore, the actions of "Uralsevergaz - NGC" CJSC violated the antimonopoly legislation.