OREANDA-NEWS. September 25, 2009. The Federal Antimonopoly Service (FAS Russia) found that "Voenno-Promyshlennaya Kompania" CJSC (further on - "VPK" CJSC), "Suntrade Limited" (of Cyprus) and "Vistafin Company Limited" (of Cyprus) violated Part 2 Article 11 of the Federal Law "On Protection of Competition" (competition-restricting agreements and concerted actions), reported the press-centre of FAS Russia.

Under Article 13 of the Federal Law "On Protection of Competition" (allowability of agreements, concerted actions, transactions), FAS Russia found that the actions of the companies can be allowed because of the positive economic effect "Radiophizika" OJSC.

"VPK" CJSC is a member of the same group of persons with "GSKB "Almaz-Antei" OJSC.

As a result of concerted actions, exercise by the company. "Concern PVO "Almaz-Ante" OJSC obtained the rights to determine business conditions for "Radiophizika" OJSC.

Control of "Concern PVO "Almaz-Ante" OJSC over "Radiophizika" OJSC as a co-executor of government defence contracts gives the group of persons of "Concern PVO "Almaz-Ante" OJSC particular competitive advantages in comparison with other companies involved in the military-industrial complex.

FAS Russia established that after the group of persons of "GSKB "Almaz-Antei" OJSC had gained control over "Radiophizika" OJSC, the latter showed positive trends, such as increased number of orders from "Concern PVO "Almaz-Ante" OJSC, additional financing, purchasing new equipment, modernizing the existing production capacities, increasing company's personnel, and raising up salaries.

Therefore, actions of the above persons resulted in positive economic effect for "Radiophizika" OJSC. FAS Russia pronounced that such concerted actions of the companies could be allowed.

The recognized fact that actions of the companies - members of the group of persons of "GSKB "Almaz-Antei" OJSC restricted and initiation of the case under Article 11 of the Federal Law "On Protection of Competition" should be a serious warning to all companies exercising actions aimed at acquiring by various means the rights over economic entities that are non members of the same group of persons with them, said Alexei Ulyanov, the Head of the FAS Russia's department for Industry Control.

In 2008-2009 гthe companies - members of the same group of persons with "Concern PVO "Almaz-Ante" OJSC were imposed 7 fines for the total amount over 2 million Rubles for completing transactions without obtaining prior approval of FAS Russia. The fines were paid to the federal budget in full.

In November 2008, FAS Russia considered a petition of "VPK" CJSC about acquiring more than 50% voting shares of "Radiophizika" OJSC from "Vistafin Company Limited" (of Cyprus). Governed by Clause 5 Part 2 Article 33 of the Federal Law "On Protection of Competition", FAS Russia did not grant the petition.

The petition stated that "VPK" CJSC and "Radiophizika" OJSC were members of the same group of persons. At the same time, all previous petitions and notifications did not include any information that "Radiophizika" OJSC was in the same group of persons with "VPK" CJSC.

In September 2008, "Vistafin Company Limited" purchased more than 50% registered ordinary shares of "Radiophizika" OJSC from the above off-shore companies.

Then in December 2008 "VPK" CJSC sold its shares of "Radiophizika" OJSC to "GSKB "Almaz-Antei" OJSC, a member of the same group of persons with "Concern PVO "Almaz-Ante" OJSC.