OREANDA-NEWS. September 30, 2009. The North Ossetia Office of the Federal Antimonopoly Service (OFAS Russia) found that four oil companies - "YuNGK" Ltd., "Energos" Ltd., "Rosneft'-Artag " Oil Company" OJSC and "Roma" Ltd violated Clause 1 Part 1 Article 11 of the Federal Law "On Protection of Competition" by engaging in concerted actions, which that led to fixing and maintaining monopolistically high prices for petrol in the Republic of North Ossetia – Alania, reported the press-centre of FAS Russia.

On 11th February 2009, the North Ossetia OFAS Russia initiated proceedings against five companies, including "Energia" Ltd. The case against this company was closed because inspection had proved that the company had not had dominant position on the market of oil products.

As part of the national weekly monitoring of the prices for oil products (petrol grades А-76 (80), Аi-92, Аi-95 and diesel fuel), the North Ossetia OFAS Russia analyses the market of oil products in the Republic of North Ossetia - Alania.

Having analyzed the data on the pricing policy of the five largest market participants, the North Ossetia OFAS Russia discovered that in March-September 2008 prices for oil products had been increasing on average by 1 Rubles per month, and in October 2008 - February 2009 prices had decreased insignificantly or remained at the same level. OFAS Russia noted that price tended to change for the same amount.

Such price trends and behaviour of the market participants led to a conclusions that "YuNGK" Ltd., "Energos" Ltd., "Rosneft'-Artag " Oil Company" OJSC, "Roma" Ltd and "Energia" Ltd. exercised concerted actions on the market of oil products in a relatively synchronized and uniform manner.

The North Ossetia OFAS Russia issued a determination on the case, requesting the companies to immediately stop violating the antimonopoly legislation.

Currently OFAS Russia is initiating administrative proceedings against the companies under Article 14.32 of the Code of the Russian Federation on Administrative Violations. "Turnover fines" will be from 1% to 15% of the companies' turnover for the preceding year.

Reference:
Clause 1 Part 1 Article 11 of the Federal Law "On Protection of Competition" prohibits agreements between economic entities or concerted actions of economic entities on the goods markets if such agreements or concerted actions lead or can lead to fixing or maintaining prices.