OREANDA-NEWS. July 29, 2009. The Federal Antimonopoly Service (FAS Russia) imposed administrative charges upon "Znamya" Moscow Machine-Building Works" OJSC and fined the company 1,185,390 Rubles under Article 14.31 of the Code on Administrative Violations, reported the press-centre of FAS Russia.

Earlier FAS Russia found that "Znamya" Moscow Machine-Building Works" OJSC violated Clause 5 Part 1 Article 10 of the Federal Law "On Protection of Competition" in terms of refusing to sign contracts with any economic or technological justifications or evading contracts with particular buyers (customers) and issued a determination to eliminate the violations.

The case was initiated upon a petition of "356 ARZ" OJSC, which is mainly involved in repair of aviation equipment.

"Znamya" Moscow Machine-Building Works" OJSC manufactures components to military and civil aviation equipment. The company violated the law by refusing and evading the contract for supplying components to hydraulic helicopter systems with "356 ARZ" OJSC.

According to the determination issued by FAS Russia, "Znamya" Moscow Machine-Building Works" OJSC must have been eliminated the antimonopoly violation by concluding a contract with "356 ARZ" OJSC for supplying components required to repair "Mi" helicopters.

Within the statutory period, "Znamya" Moscow Machine-Building Works" OJSC presented the documents to FAS Russia, confirming that the determination had been executed.

Under Article 14.31 of the Code on Administrative Violations, if an economic entity that has dominant position on the goods market exercises the actions that are classified as abusing dominant position and are forbidden by the antimonopoly legislation of the Russian Federation, this is punishable by imposing an administrative fine upon legal persons - from 0.01 to 0.15 of the proceeds gained by the violators from selling the goods on the market where the violation was committed, in the calendar year preceding the year when the violation was discovered.