OREANDA-NEWS. April 02, 2009. The Federal Arbitration Court of the Volga-Vyatka District dismissed the claim of "Yaroslavl City Grid" (MUP "Yargorelektroset") and upheld the resolution of the office of the Federal Antimonopoly Service in the Yarislavl region (OFAS Russia) on imposing administrative charges upon the violator (4 585 537 Rubles fine), reported the press-centre of FAS Russia.

Earlier Yaroslavl OFAS Russia initiated a case upon a petition of "Lotos" Construction-and-Mounting Production Cooperative ("Lotos" SMPK) that MUP "Yargorelektroset" had violated the antimonopoly legislation prohibiting actions (lack of actions) of an economic entity with dominant position, particularly, violations of the statutory pricing procedures, which can infringe the interests of other persons/ entities.

MUP "Yargorelektroset" violated the law because the company breached its duties to petition to the Yaroslavl Regional Department for Fuel, Energy and Tariffs Regulation in order to establish the payment rates for "Lotos" SMPK for design-built technological connection to the electric networks that belong to MUP "Yargorelektroset". In connection to this violation, the Yaroslavl OFAS Russia imposed administrative charges upon Article 14.31 of the Code of the Russian Federation on Administrative Violations and fined the company 6 270 72.52 Rubles.

MUP "Yargorelektroset" disagreed with the decision made by the Yaroslavl OFAS Russia and filed a lawsuit to the Yaroslavl Regional Arbitration Court on invalidating and canceling the resolution which imposed administrative penalties upon the petitioner. The Court of the First Instance did not revoke the resolution but reduced the fine to 4 585 537.10 Rubles.

The 2nd Arbitration Appeal Court in Kirov upheld the ruling of the Yaroslavl Regional Arbitration Court.

MUP "Yargorelektroset" filed a lawsuit to the Federal Arbitration Court of the Volga-Vyatka District against the above judicial acts; however, the Court of Cassation Instance ruled to uphold them.