OREANDA-NEWS. December 18, 2009. The Federal Arbitration Court of the Moscow District conformed validity of the decision and determination issued by the Federal Antimonopoly Service (FAS Russia) regarding "Gazprom" OJSC and "Gazprom Dobycha Orenburg" Ltd., reported the press-centre of FAS Russia.

Having investigated the case initiated upon a petition from several Russian consumers of granulated sulphur, FAS Russia found that a group of persons including "Gazprom" OJSC and "Gazprom Dobycha Orenburg" Ltd. violated Clause 1 Part 1 Article 10 of the Federal Law "On Protection of Competition" (abusing dominant position).

In course of the investigation FAS Russia discovered that the group of persons had violated the antimonopoly legislation by fixing monopolistically high price for granulated sulphur, produced by the group of persons of "Gazprom" OJSC in processing of crude hydrocarbons.

"Within Q2 2008 the price for granulate sulphur increased severalfold, which forced economic entities to petition to FAS Russia", pointed out Andrey Tsyganov, Deputy Head of FAS Russia.

"Gazprom Dobycha Orenburg" Ltd. disagreed with the decision and determination of the antimonopoly authority and filed an appeal. On 5th June 2009, the Moscow Arbitration Court dismissed the appeal, and later the Appeal Court and Cassation Court confirmed validity of the FAS Russia's decision and determination.

Reference:
Part 1 Article 10 of the Federal Law "On Protection of Competition" prohibits actions (lack of actions) of an market-dominating economic entity, that have resulted or can result in preventing, restricting or eliminating competition and (or) infringing the interests of other persons.

Under Article 14.31 of the Code of the Russian Federation on Administrative Violations, FAS Russia fined the group of persons including "Gazprom" OJSC and "Gazprom Dobycha Orenburg" Ltd. more than 9 million Rubles for abusing market dominance. So far the companies have not yet paid the fine.