OREANDA-NEWS. On August 28, 2008 the Federal Antimonopoly Service (FAS Russia) initiated proceedings against the "Agency for Mortgage Housing Credit" OJSC (further on referred to as "AIZhK" OJSC) and 45 insurance organizations for violating Part 1 Article 11 of the Federal Law "On Protection of Competition", reported the press-centre of FAS Russia.

The case was initiated upon a voluntary statement from "AIZhK" OJSC on entering into cooperation agreements (contracts) with 45 insurance organizations: "Moscow Insurance Company" OJSC, "Surgutneftegaz" Insurance Association" Ltd., "REKON" People's Insurance Company" Ltd., "RESO-Garantia" Open Joint-Stock Insurance Company, "OSNOVA" Industrial Insurance Group" Ltd., "Standart-Reserve" Closed Joint-Stock Insurance Company, "Yugoria" State Insurance Company", "Admiral" Insurance Group" Ltd., "TATARSTAN" National Insurance Company"OJSC, "AlphaStrakhovanie" OJSC, "Renaissance Insurance Group" Ltd., "SKM" Insurance Group" OJSC, "ORANTA" INSURANCE GROUP" Ltd., "First Insurance Company" Ltd., "Zhiva" Open Joint-Stock Insurance Company, "ENERGOGARANT" JOINT-STOCK INSURANCE COMPANY" OJSC, "Capital Strakhovanie" OJSC, "PARI" Insurance Company" OJSC, "UralSib" Insurance Group" CJSC, "Military-Insurance Company" OJSC, "Informstrakh" Joint-Stock Insurance Company" CJSC, "Inter-Branch Insurance Centre" OJSC, "Russky Mir" Insurance Company" OJSC, "SOGAZ" OJSC, "Spasskie Vorota" Insurance Group" CJSC, "GUTA-Strakhovanie" CJSC, "ROSNO" Russian People's Insurance Association" OJSC, "Rosgosstrakh" OJSC, "Rosgosstrakh - Accord" Ltd., "Rosgosstrakh - Dalny Vostok" Ltd., "Rosgosstrakh - Povolzhye" Ltd., "Rosgosstrakh - Severo-Zapad" Ltd., " Rosgosstrakh - Sibir" Ltd., " Rosgosstrakh - Stolitsa" Ltd., " Rosgosstrakh - Tatarstan" Ltd., "Rosgosstrakh - Ural" Ltd., "Rosgosstrakh - Centre" Ltd., "Rosgosstrakh - Yug", "Ingosstrakh" Open Joint-Stock Insurance Company, "Soglasie" Insurance Company" Ltd., "Rossia" Open Joint-Stock Insurance Company, "Zurich. Retail Insurance" Insurance Company" Ltd., "Shelsna" Insurance Company" OJSC, "Moscow Joint-Stock Insurance Company" CJSC, "SOGAZ-ZHOZN" Insurance Company" Ltd.

In its statement, "AIZhK" OJSC admitted that the cooperation agreements (contracts) with the above insurance organizations contained provisions that restrict competition and are forbidden by the antimonopoly legislation. The company also informed on its refusal to participate in these cooperation agreements and enclosed the available information about the agreements.

Simultaneously with "AIZhK" OJSC, 15 insurance organizations submitted similar statements. Furthermore, 8 insurance organizations independently reported to FAS Russia that their cooperation agreements (contracts) with "AIZhK" OJSC violated the Federal Law "On Protection of Competition", announced their refusal to participate in such cooperation agreements (contracts) and enclosing the available information about these agreements. In their statements, financial organizations confirmed that the agreements (contracts) between "AIZhK" OJSC and insurance organizations were in breach of Part 1 Article 11 of the Federal Law "On Protection of Competition" (which prohibits rate-setting in the agreements between economic entities.

Therefore, "AIZhK" OJSC and 23 insurance organizations took advantage of the administrative leniency programme under Article 14.32 of the Code of the Russian Federation on Administrative Violations.

In accordance with the Notes to Article 14.32 of the Code of the Russian Federation on Administrative Violations, a person that has voluntarily reported to an antimonopoly body on entering into a competition-restrictive agreement, refused to participate in the agreement and presented available information to ascertain he fact of such an agreement, is relieved from administrative liability.

FAS Russia will make a decision on administrative liability of the above financial organizations upon processing the antimonopoly case.