OREANDA-NEWS. July 21, 2008. The Federal Antimonopoly Service (FAS Russia) has initiated a case against "Alcoa Rus" Ltd. for breaching Part 1 Article 10 of the Federal Law "On Protection of Competition" (abusing dominant position), reported the press-centre of FAS Russia.

The case was initiated upon a petition of "Oboronpromcomplex" State-Owned Share-Holding Company" OJSC ("Oboronpromcomplex" GAC" OJSC) regarding increased ex-factory prices of "Oboronpromcomplex" GAC" OJSC for the products supplied to "Aviastar-SP" CJSC in 2007 - 2008.

The group of persons, including "Alcoa Rus" Ltd. and "Samara Metal Works" OJSC, violated the law by fixing monopolistically high prices for their products in the investigated period.

"Oboronpromcomplex" GAC" OJSC ensures sustainable and guaranteed execution of the government's defense orders and target federal programmes in the Russian Federation by open market purchasing and supplying raw materials and material-and-technical resources to the executors of the government's defense orders.

The producer of the aluminum shapes is "Samara Metal Works" OJSC.

"Alcoa Rus" Ltd. (Moscow) is the wholesale supplier of aluminum products, manufactured by "Samara Metal Works" OJSC, to the market of the Russian Federation on the basis of supply contracts. The above companies are included in the "Alcoa" group of companies (USA), which is the leading producer of primary aluminium, aluminum products and aluminum oxide in the world.

"Alcoa Rus" Ltd. has the dominant position on the markets of aluminum shapes in he Russian Federation.

"When several years ago we granted permission to "Alcoa" for buying productive assets in Russia - said Andrei Tsyganov, Deputy Head of FAS Russia - we put up strict behavioral requirements, with regard to both price policy and absolute enforcement of the federal programmes. Violating the FAS Russia's determination and abusing dominant position is a serious offence".

The case will be processed at the beginning of September.