OREANDA-NEWS. January 24, 2011. To be able to obtain important additional information, the FAS Russia’s Commission postponed case against “Russian Railways” OJSC (“RZhD” OJSC) until 14th February for violating Part 1 Article 10 of the Federal Law “On Protection of Competition” by creating discriminatory conditions and infringing the interests of contractors and insurers, reported the press-centre of FAS Russia.

The case was initiated upon “RZhD” OJSC issuing the documents regulating the issues of insurance in course of constructing facilities of “RZhD” OJSC. For instance, “RZhD” OJSC issued an instruction, according to which contractors could only receive compensation for insurance of related risks only for insurance policies were bought from the companies that met the requirements of “RZhD” OJSC: “Rosgosstrakh” OJSC, “Ingosstrakh” Open Joint-Stock Insurance Company, “SOGAZ” OJSC, “ZhASO” OJSC and “ROSNO” Insurance Company” OJSC.

“RZhD” OJSC also issued an instruction that when concluding the contracts for construction of new facilities under 2010 investment programme, it was necessary to consider as a first priority possibility to conclude insurance agreements for construction-and-assembly works and equipment with “ZhASO” OJSC.

Also the standard from for the Contract for construction-and-assembly works for construction reconstruction) of a particular facility (fixed price, tender, temporary buildings (constructions)), as well as the construction Contract of “RZhD” OJSC provides for approval by the customer, namely “RZhD” OJSC, the insurance company selected by a contractor as the insurer.

Reference:

Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (Omissions) of an economic entity with dominant market position that lead or can lead to preventing, restricting, eliminating competition and (or) infringing the interests of other people, particularly, creating discriminatory conditions.