OREANDA-NEWS. March 22, 2011. The Federal Arbitration Court of the Moscow District overturned the judgment of Moscow Arbitration Court and the ruling of the 9th Arbitration Appeal Court and upheld in full the decision and determination issued by the Federal Antimonopoly Service (FAS Russia) regarding the Federal Railway Transport Agency, reported the press-centre of FAS Russia.

Earlier the FAS Russia Commission found that the Federal Railway Transport Agency violated Part 1 Article 15 and Article 16 of the Federal Law “On Protection of Competition”.

The Federal Railway Transport Agency approved and the “Methods for calculating the liability limits of the “Departmental Security Service of the Railway Transport of the Russian Federation” Federal State Enterprise to its counteragents for cargo protection and escorting by railway transport in the Russian Federation”. The document was also agreed upon with the “Departmental Security Service of the Railway Transport of the Russian Federation” Federal State Enterprise. This document infringed the rights of consignors because they were not allowed to be compensated for the full cost of the freight secured by the “Departmental Security Service” if the “Departmental Security Service” failed to properly exercise its duties.

The FAS Russia Commission also found that the “Departmental Security Service of the Railway Transport of the Russian Federation” Federal State Enterprise violated Clause 3 Part 1 Article 10 and Article 16 of the Federal Law “On Protection of Competition”. The “Departmental Security Service” was imposing disadvantageous contract conditions upon its counteragents for providing the services for escorting and protecting freight cars and containers en route on railways, and agreed with the Federal Railway Transport Agency upon the “Methods for calculating the liability limits of the “Departmental Security Service of the Railway Transport of the Russian Federation” Federal State Enterprise”. It enabled the “Departmental Security Service” to unilaterally impose the conditions of the services for shift escorting and cargo protection upon economic entities.

Having investigated the case against the Federal Railway Transport Agency, the FAS Russia Commission issued the following determinations:

- the Federal Railway Transport Agency must make changes to the current procedures for establishing the liability limits of the “Departmental Security Service of the Railway Transport of the Russian Federation” Federal State Enterprise to the counteragents if case of short delivery, losses or damages to cargo en route;

- “Departmental Security Service of the Railway Transport of the Russian Federation” Federal State Enterprise must change the conditions of the contract for providing the services for escorting and protecting cargo cars and containers en route by railway transport, the subject of which is shift escorting and protecting cargo cars and containers en route by railway transport in the Russian Federation.

On 16th March 2011, the Federal Arbitration Court confirmed the FAS Russia’s decision.