OREANDA-NEWS. August 07, 2009. The Federal Antimonopoly Service (FAS Russia) initiated administrative proceedings against "PhosAgroAG" CJSC for failure to present information upon a request of the antimonopoly authority. The information is necessary to stabilize the situation at the production complex in Pikalyovo, reported the press-centre of FAS Russia.

In January 2009, FAS Russia found that the group of persons of "BaselCementPikalyovo" CJSC violated Part 1 Article 10 of the Federal Law "On Protection of Competition" (abusing dominant position).

The company violated the antimonopoly laws by terminating supplies of belite slurry (the raw materials for cement production) to "Pikalyovsky Cement" CJSC in and cutting down supplies of carbonate mud (the raw materials for production of soda and potash) to "Metakhim" CJSC in spite of valid supply contracts.

It put cement production at "Pikalyovsky Cement" CJSC to a halt and considerably reduced production of soda and potash at "Metakhim" CJSC. It caused dramatic social tension because three town companies practically stood idle.

The Inter-Branch Headquarters for stabilising the situation at the production complex in Pikalyovo instructed FAS Russia to analyze pricing for nephelinic (belite) slurry, carbonate mud, and nephelinic concentrate by 1st August 2009.

FAS Russia requested information about product costs and return from "Metakhim" CJSC, "EUROCEMENT Group" CJSC and "BaselCementPikalyovo" CJSC.

"PhosAgroAG" CJSC failed to meet the deadline for presenting the requested information. This does not allow FAS Russia to carry out a detailed pricing analysis and establish fair prices for nephelinic (belite) slurry, carbonate mud, and nephelinic concentrate.

Failure to present information upon a request of an antimonopoly body is an offence that threatens public administration.

"The actions of "PhosAgroAG" CJSC prevent proper recovery of the Pikalyovo industrial complex. For failure to present information "PhosAgroAG" CJSC can be fined from 300,000 to 500,000 Rubles", said Denis Davydov, the Deputy Head of the FAS Russia's Department for Industry Control.