OREANDA-NEWS. On July 07, 2008 the Moscow Arbitration Court validated an amicable settlement between the Federal Antimonopoly Service (FAS Russia) and "Silvinit" OJSC, reported the press-centre of FAS Russia.

Earlier FAS Russia recognized that "Silvinit" OJSC breached Clause 1 Part 1 Article 10 of the Federal Law "On Protection of Competition" (abusing dominant position) and issued a determination with a list of actions to undertake in order to eliminate the violations. In addition, FAS Russia, based on the materials presented by "Silvinit" OJSC, obligated the company to transfer the income of 127 013 800 Rubles, obtained as a result of the antimonopoly violations, to the federal budget.

The company violated the law by setting monopolistically high prices for potassium chloride supplied to the customers in the first quarter of 2007.

Under the amicable settlement:

- "Silvinit" OJSC admitted that it had violated Clause 1 Part 1 Article 10 of the Federal Law "On Protection of Competition" and shall not undertake unjustified actions to terminate or restrict production of potassium chloride without a prior agreement of the antimonopoly authority. Every quarter, upon the FAS Russia's request, the company shall present information on the current ex-works prices for potassium chloride as well as supplies of potassium chloride to the Russian consumers and export of potassium chloride.

- Within three months after the date when the Court validated the amicable settlement, the company shall transfer the income, gained by violating the antimonopoly legislation (37 m Rubles), to the federal budget.

- In every calendar year, "Silvinit" OJSC shall sell no less than 5% of potassium chloride, allocated for the Russian buyers, through the commodity exchange auctions.

- FAS Russia, together with "Silvinit" OJSC, will develop recommendations on potassium chloride exchange trading to ensure its compliance with the antimonopoly legislation.