OREANDA-NEWS. January 22, 2010. The Federal Antimonopoly Service (FAS Russia) will challenge the judgment of the Arbitration Court of St Petersburg and the Leningrad region, the operative part of which was announced in 14th January 2010. The Court allowed the claim of "BazelCementPikalyovo" CJSC on invalidating the FAS Russia's determination on imposing administrative charges upon the company (a turnover fine), reported the press-centre of FAS Russia.

In January 2009, FAS Russia found that the group of persons of "BazelCementPikalyovo" CJSC violated Part 1 Article 10 of the Federal Law "On Protection of Competition" and issued a determination requesting to sell the property portfolio owned by the group through a bidding process, or resume supplying carbonate mud to "Metakhim" CJSC and conclude a contract with "EUROCEMENT Group" CJSC for supplying belite slurry.

"BazelCementPikalyovo" CJSC violated the antimonopoly law by terminating in 2008 supplies of belite slurry (the raw material for cement production) to "Pikalyovsky Cement" CJSC and cutting down supplies of carbonate mud (the raw material for soda and potash production to "Metakhim" CJSC in spite of valid supply contracts.

Such actions of "BazelCementPikalyovo" CJSC resulted in closing down cement production at "Pikalyovsky Cement" CJSC and considerable reduction of production of soda and potash at "Metakhim" CJSC. As a consequence, social tension spread through the region as three town companies were shut down.

Under Article 14.31 of the Code of the Russian Federation on Administrative Violations, abusing market dominance in punished by an administrative fine upon legal entities - from 1 to 15% of the total proceeds gained by the violator in the previous from selling the goods on the market where the violation had been committed.

Calculating the size of the fine, FAS Russia, along with the factual circumstances of the violation, took into consideration the current economic situation and fined "BazelCementPikalyovo" CJSC more than 19.5 million Rubles.

"It should be pointed out that the Courts of three instances dismissed the claim of "BazelCementPikalyovo" CJSC and confirmed validity of the decision and determination issued by the Antimonopoly Service", emphasized Andrey Tsyganov, Deputy Head of FAS Russia. Relieving the violators from administrative liability when the Courts are satisfied that the violations of the law were proved, \ seems to be illogical to say the least".