OREANDA-NEWS. June 19, 2009. 18th Arbitration Appeal Court confirmed validity of the decision of the Chelyabinsk Office of the Federal Antimonopoly Service (OFAS Russia), which found that "Lukoil-Uralnefteproduct" Ltd. and an individual entrepreneur Kazykhanova had been engaged in concerted actions aimed at maintaining prices for petrol and diesel fuel. The Court found that the OFAS Russia's determination, prohibiting those actions, was legitimate, reported the press-centre of FAS Russia.

The Chelyabinsk OFAS Russia issued a determination to "Lukoil-Uralnefteproduct" Ltd. and an individual entrepreneur Kazykhanova requesting them to stop concerted actions and initiated administrative proceeding against them under Article 14.32 of the Code of the Russian Federation on Administrative Violations.

In January -June 2008 "Lukoil-Uralnefteproduct" Ltd. increased petrol prices in general by 15%. In the same period entrepreneur Kazykhanova also started increasing petrol prices.

The price per liter of petrol from an individual entrepreneur Kazykhanova and from "Lukoil-Uralnefteproduct" Ltd. matched each other up to a single kopek, with a one- or two-day time lag.

For instance, "Lukoil-Uralnefteproduct" Ltd. changed prices from 16th May 2008 based on the order of 15th May 2008, while an individual entrepreneur Kazykhanova changed prices from 18th May 2008 based on the order of 16th May 2008. Bother economic entities set the price per liter of petrol АI-92 at 22 Rubles 90 kopeks.

After the Chelyabinsk OFAS Russia initiated a case against the defendants, prices for the petrol sold by "Lukoil-Uralnefteproduct" Ltd. and an individual entrepreneur Kazykhanova were reduced and no more matched each other, which served as evidence of concerted actions between economic entities.

Earlier, "Lukoil-Uralnefteproduct" Ltd. and an individual entrepreneur Kazykhanova disagreed with the decision and determination, issued by the Chelyabinsk OFAS Russia, and filed a lawsuit to the Chelyabinsk regional Arbitration Court requesting to abolish the above acts. The Court took the side of the antimonopoly body and upheld its decision and determination.

Administrative proceedings were suspended because the economic entities are challenging the decision and determination of the antimonopoly body n a court of law. However, if the Courts of higher instances uphold the ruling of the Arbitration Court, the economic entities will not be able to avoid penalties.

In 2004 and 2006 the Chelyabinsk OFAS Russia already processed cases against "Lukoil-Uralnefteproduct" Ltd. and an individual entrepreneur Kazykhanova for engaging in concerted actions.