OREANDA-NEWS  On 26 February was announced, that the Federal Antimonopoly Service (FAS Russia) terminated the case against "Rosselkhozbank" OJSC and 19 insurance companies on violating Part 1 Article 11 of the Federal Law "On Protection of Competition" (competition-restrictive agreements).

The proceedings are postponed until the Antimonopoly Service investigates the cases initiated against "AIZhK" OJSC, which signed cooperation contracts (agreements) with 45 insurance companies. The case against "AIZhK" OJSC is important for successful investigation of the case against "Rosselkhozbank" OJSC.

"Rosselkhozbank" OJSC voluntarily reported to FAS Russia that the bank and 19 insurance companies singed agreements, restricting competition on the market of financial services and forbidden under the antimonopoly legislation.

The purpose of the agreements was to facilitate loan programmes for legal entities and physical persons. The agreements included, in particular, special arrangements between the bank and the insurance companies on mandatory deposits of insurance companies to the bank, which violated Article 11 the Federal Law "On Protection of Competition".

"Rosselkhozbank" OJSC refused to participate in the agreements and submitted the available information about the agreements to FAS Russia. Thus, the bank took advantage of the administrative leniency programme, under Article 14.32 of the Code of the Russian Federation on Administrative Violations.

Reference:

Part 1 Article 11 of the Federal Law "On Protection of Competition" forbids agreements or concerted actions between economic entities on the goods markets, if such agreements or concerted actions result or can result in fixing or maintaining prices (rates).

According to the Notes to Article 14.32 of the Code of the Russian Federation on Administrative Violations, a person that voluntarily reported to the antimonopoly body on entering into a competition-restrictive agreement, which is forbidden by the antimonopoly legislation, and refused to participate or further participate in this agreement and submitted the available information (data) to help establish the fact of such an agreement, is relieved from administrative liability.