Courts Confirmed Validity of Astrakhan OFAS on Russian Railways
OREANDA-NEWS. February 16, 2011. The Federal Arbitration Court of the Povolzhie District confirmed validity of decision made by the Office of the Federal Antimonopoly Service in the Astrakhan region (Astrakhan OFAS Russia) that “Russian Railways” OJSC violated Part 1 Article 10 and Clause 9 Part 1 Article 10 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.
The case was initiated in 2009 upon a petition of “Lukoil-Nizhnevolzhskneft” Ltd. The company received from “Russian Railways” OJSC technical conditions for connecting the track under construction to the rail tracks of “Russian Railways” OJSC. However, after the construction project started, “Russian Railways” OJSC included in the technical conditions a Clause about constructing the highway over-crossing to cross No.50 rail track at the expense of “Lukoil-Nizhnevolzhskneft” Ltd. The estimated cost of this construction was 95 million Rubles (in the prices of the year 2000).
The Commission of Astrakhan OFAS Russia determined that No.50 rail track belonged to “Russian Railways” OJSC. Having the dominant position on the market, “Russian Railways” OJSC violated the antimonopoly norms by imposing disadvantageous conditions and creating obstacles for “Lukoil-Nizhnevolzhskneft” Ltd. entering the market of oil production.
Astrakhan OFAS Russia issued a determination to “Russian Railways” OJSC to exclude the Clause about construction of the highway over-crossing from the technical conditions issued to “Lukoil-Nizhnevolzhskneft” Ltd.
“Russian Railways” OJSC disagreed with the conclusions of Astrakhan OFAS Russia and filed a lawsuit to Astrakhan Regional Arbitration Court. The Courts of three instances confirmed legitimacy of the decision made by the antimonopoly body.
Then “Russian Railways” OJSC executed the determination of Astrakhan OFAS Russia.
“Executing the determination of Astrakhan OFAS Russia enables “Lukoil-Nizhnevolzhskneft” Ltd. to finally implement the project for construction of the railway track not in common use leading to the company’s integrated transport-and-production facilities. It will make possible delivering equipment and materials for field development and operation in the North Caspian area in order to produce oil”, commented the Head of Astrakhan OFAS Russia, Mr. Nicolai Merkulov.
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