OREANDA-NEWS. December 29, 2010. At the hearing of the administrative case, the Office of the Federal Antimonopoly Service in the Sakhalin region (Sakhalin OFAS Russia) and “RN-Vostoknefteproduct” Ltd. reached a settlement, by which the company admitted the fact of violating the antimonopoly law. The parties also determined the size of the fine to be imposed upon the company, as 1% of the violator’s income from selling goods on the market where the administrative violation was committed.

The Court accepted the settlement, under which “RN-Vostoknefteproduct” Ltd. is obligated to pay a fine in the size of around 15 million Rubles by 31st December 2010.

On 12th March 2009, the Commission of Sakhalin OFAS Russia found that “RN-Vostoknefteproduct” Ltd. violated Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition”. The company used its advantages on retail market of oil products to fix in November 2008 – January 2009 monopolistically high prices for motor petrol and diesel fuel sold on retail markets in the Sakhalin region.

The Courts of all instances confirmed legitimacy of the decision made by Sakhalin OFAS Russia.

Actions of “RN-Vostoknefteproduct” Ltd. constitutes an administrative violation under Article 14.31 of the Code of the Russian Federation on Administrative Violations: an economic entity with dominant market position exercising actions that are recognized as abusing market dominance and are prohibited by the antimonopoly law of the Russian Federation.

On 22nd April 2009, Sakhalin OFAS Russia made “RN-Vostoknefteproduct” Ltd. administratively liable and imposed a turnover fine upon the company.

“RN-Vostoknefteproduct” Ltd. filed a lawsuit to Sakhalin Regional Arbitration Court requesting to invalidate and abolish the determination of Sakhalin OFAS Russia.

On 23rd December 2010, Sakhalin Regional Arbitration Court accepted the agreement, by which the company admitted the fact of violating the Federal Law “On Protection of Competition”. Sakhalin OFAS Russia and “RN-Vostoknefteproduct” Ltd. determined the size of the fine at around 15 million Rubles; the company has to pay the fine by 31st December 2010.