OREANDA-NEWS. December 15, 2009. The Federal Arbitration Court of the Moscow District confirmed validity of the decision and determination issued by the Federal Antimonopoly Service (FAS Russia) regarding "Bazel-Cement-Pikalyovo" CJSC, reported the press-centre of FAS Russia.

Earlier FAS Russia found that "Bazel-Cement-Pikalyovo" CJSC violated Part 1 Article 10 of the Federal Law "On Protection of Competition" (prohibiting abuse of dominance) and issued a determination to "Bazel-Cement-Pikalyovo" CJSC to stop the actions that violated the antimonopoly legislation.

The company breached the law by terminating supplies of belite slurry (the raw material for cement production) to "Pikalevsky Cement" CJSC in 2008 and reducing supplies of carbonate mud (the raw material for production of soda and potash) to "Metakhim" CJSC despite valid supply contracts.

It led to termination of cement production at "Pikalevsky Cement" CJSC and considerable reduction of production of soda and potash by "Metakhim" CJSC. As a result, social tension arose in the region because three town companies came to a halt. The situation normalized only after the Chairman of the Russian Government Vladimir Putin visited Pikalyovo.

Currently the authorities have established the Headquarters for restoring Pikalyovo Production Facilities. FAS Russia is actively involved in its work.

According to the FAS Russia's determination, by 1st May 2009 "Bazel-Cement-Pikalyovo" CJSC was required to organize tenders on selling its property, or resume supplying carbonate mud to "Metakhim" CJSC and conclude a contract for supplying slurry to "EUROCEMENT Group" CJSC by 15th May 2009.

However, "Bazel-Cement-Pikalyovo" CJSC disagreed with the decision and determination issued by the antimonopoly authority and filed a lawsuit. The Courts confirmed the rightness of the Antimonopoly Service.