OREANDA-NEWS. September 29, 2009. The Moscow Arbitration Court dismissed the claim of "RZhD" OJSC on abolishing a determination of the Federal Antimonopoly Service (FAS Russia). The FAS Russia's determination is aimed at compliance of a group of persons, including "RZhD" OJSC (a consignor, the owner of the infrastructure), "Refservice" OJSC (an operator of insulated rolling stock, a forwarding agent), with the antimonopoly legislation, reported the press-centre of FAS Russia.

"RZhD" OJSC violated the law because it unreasonably evaded providing integrated transportation services cargo transportation by railway transport in general use, in insulated rolling stock of a general fleet) to a consignee. "RZhD" OJSC forced to enter into a contract with "Refservice" OJSC. Also "Refservice" OJSC and "RZhD" OJSC сcreated discriminatory conditions for forwarding agents/ operators of insulated rolling stock, that were not members of the group of persons of "RZhD" OJSC.

In May 2006 "RZhD" OJSC, which is the only public carrier on Russian railways, formed a subsidiary - "Refservice" OJSC.

When "Refservice" OJSC began its operations, "RZhD" OJSC started refusing to accept applications of consignors for cargo transportation in insulated rolling stock of the carrier - "RZhD" OJSC (general fleet) with payment of transportation fee established in accord with the price-list for such transportation. Effectively consignors were deprived possibility to directly use carrier's services for transporting their as after forming "Refservice" OJSC the carrier - "RZhD" OJSC refused to provide transportation services with an excuse that it did not have the required cars, but agreed to provide the services only if "Refservice" OJSC was hired as the forwarding agent.

Thus, consignors were forced to apply to the owners of insulated rolling stock, among whom "Refservice" OJSC had dominant position.

As a result, the condition for access of consignors to cargo transportation by railway transport in general use is a contract for providing the services for organizing transportation with the owners of insulated cars, among which only "Refservice" OJSC can supply the fleet of "RZhD" OJSC to the consignors on a paid basis (the sum is specified in a separate contract).

Under the Appendix to the Contract, "Refservice" OJSC orders insulated rolling stock (general fleet) from the carrier - "RZhD" OJSC upon an application of the consignor. The cost of such services, imposed upon cargo owners reached up to 50% of the transportation fees, specified in the price-list for cargo transportation by general fleet (cars of "RZhD" OJSC). Effectively, "Refservice" OJSC acts as an intermediary between cargo owners and the carrier, which artificially increases the transport costs of the cargo owners and violates the pricing procedures for the services of cargo transportation by railways, established by the government.

As stated in course of the case investigation, those actions of "RZhD" OJSC contravened not only the antimonopoly legislation but also Articles 1, 2, and 12 of the Federal Law "On Railway Transport in the Russian Federation".

The FAS Russia's determination is aimed at developing equal conditions of economic activities of the operators of insulated rolling stock, forwarding agents independently of their affiliation with "RZhD" OJSC, unconditional observance of the right of consignors for use of integrated transport services provided by the carrier under the rates regulated by the government, and reduction of the costs for transportation of food products, and , as a consequence, uncontrolled growth of prices for food products.

FAS Russia is of the opinion that executing the decision and the determination on the case, issued in follow-up of the decision, leads to reduction of transportation expenses of producers and the commercial sector for transportation of food products by railways and, as a consequence, restricting increase of prices for food products.

The judicial ruling finalized the discussion about legitimacy of the FAS Russia's decision and determination, that the group of persons including "RZhD" OJSC and "Refservice" OJSC had violated the antimonopoly legislation.

Accordingly, it confirmed the right of consignors to transport cargo under general fleet conditions until the group of "RZhD" OJSC has dominant position on the market for providing insulated rolling stock for cargo transportation by railway transport in general use.