OREANDA-NEWS. April 13, 2010. The Federal Antimonopoly Service (FAS Russia) held "Sylvinit" OJSC and "Mineral Trading" Ltd. administratively liable and fined the companies 142,909,718.19 Rubles and 18,062,570.51 Rubles accordingly, reported the press-centre of FAS Russia.

On 21st December 2009, FAS Russia found that Sylvinit" OJSC and "Mineral Trading" Ltd. violated Clause 1 Part 1 Article 11 of the Federal Law "On Protection of Competition" (exercising concerted actions that could result in price fixing) and Clause 1 Part 1.2 Article 11 of the Federal Law "On Protection of Competition" (prohibiting "vertical" agreements between economic entities that result in fixing product resale prices).

The companies violated the law by exercising concerted actions aimed at possible increase of potassium chloride for Russian producers of complex mineral fertilizers to 4750 Rubles per ton from the second half of 2009.

Also, FAS Russia found that No.MT/SLV-2009 contracts of 31st December 2008 between "Sylvinit" OJSC and "Mineral Trading" Ltd. led to fixing resale price for potassium chloride. Based on the contract, the producer of potassium chloride ("Sylvinit" OJSC) assigned to the intermediary ("Mineral Trading" Ltd.) exclusive rights to sale the company's products to customers - plants producing mineral fertilizers.

Recognizing of violations of the above provisions of the Federal Law "On Protection of Competition" by the antimonopoly authority constituted the grounds for imposing an administrative fine under Article 14.32 of the Code of the Russian Federation on Administrative Violations.

Reference:
Article 14.32 of the Code of the Russian Federation on Administrative Violations established administrative liability for entering into a competition restricting agreement, engaging in competition-restricting concerted actions that are prohibited by the antimonopoly legislation of the Russian Federation.