OREANDA-NEWS. On April 22, 2009 the Federal Antimonopoly Service (FAS Russia) found that "Izhnash" Concern" OJSC and "Deryabin'-Oruzhie" Ltd. violated Article 14 of the Federal Law "On Protection of Competition" (prohibiting competition-restricting agreements or concerted actions between economic entities), reported the press-centre of FAS Russia.

"Izhnash" Concern" OJSC and "Deryabin'-Oruzhie" Ltd. are involved in economic operations on the market of non-military weapons. "Izhnash" Concern" OJSC manufacturers and "Deryabin'-Oruzhie" Ltd. buys those products for further distribution.

Investigating the case, FAS Russia established that "Izhnash" Concern" OJSC and "Deryabin'-Oruzhie" Ltd. concluded an exclusive distribution contract. Clause 3.5 of the contract states that throughout the period of validity of the contract, Izhnash" Concern" OJSC undertakes not to sell its products, directly or through its official dealers, to any legal entity or physical person except "Deryabin'-Oruzhie" Ltd.

According to FAS Russia, such contract provisions can restrict competition on the market of non-military and service weapons, and, particularly, result in economically and technologically ungrounded refusals of Izhnash" Concern" OJSC to enter into contracts with the buyers of those products.

When FAS Russia was investigating the case, Izhnash" Concern" OJSC mailed a copy of an additional contract of 21st November 2008 to the Antimonopoly Service. The additional contract cancelled the anticompetitive provisions included in the main contract. Therefore, the antimonopoly violation was partially eliminated during the case investigation.

When the case against "Izhnash" Concern" OJSC and "Deryabin'-Oruzhie" Ltd. is finalized, FAS Russia will issue a determination reqeusting complete elimination of the violation and its consequences, in particular, by publishing information on amending and correcting the distribution contract on the open sources.