OREANDA-NEWS. March 30, 2011. “Gazprom Mezhregiongaz Ioshkar Ola” Ltd. paid 7,609,416 Rubles as a fine to the federal budget for abusing market dominance, reported the press-centre of FAS Russia.

On 22nd February 2011, Arbitration Courts of First and Appeal Instances confirmed legitimacy of actions undertaken by the Office of the Federal Antimonopoly Service in the Marii El Republic (Marii El OFAS Russia) that had made “Gazprom Mezhregiongaz Ioshkar Ola” Ltd. administratively liable under Article 14.31 of the Code of the Russian Federation on Administrative Violations.

Earlier the Commission of Marii El OFAS Russia found that “Gazprom Mezhregiongaz Ioshkar Ola” Ltd. violated Clause 10 Part 1 Article 10 of the Federal Law “On Protection of Competition”.

The company abused market dominance by breaching the pricing procedures established by No.307 Decree of the Government of the Russian Federation “On the Procedures for Providing Utility Services to Citizens” of 23rd May 2006 when the company determined the price for supplying natural gas to a housing managing company – “Zhilischno-Kommunalny Service” Municipal Managing Company” Ltd. – under a gas supply contact based on the costs of gas supply for industrial consumers rather that for the population, accounting for wholesale gas price, prices for distribution and logistical support services, as well as the rates for gas transportation services. Based on its decision, Marii El OFAS Russia issued a determination to “Gazprom Mezhregiongaz Ioshkar Ola” Ltd. to eliminate the violation and imposed an administrative fine upon the company.

“Gazprom Mezhregiongaz Ioshkar Ola” Ltd. filed a lawsuit challenging the determination of Marii El OFAS Russia. The Arbitration Courts of two Instances confirmed legitimacy of the conclusions made by the antimonopoly body towards preventing “Gazprom Mezhregiongaz Ioshkar Ola” Ltd. abusing its dominant position and applying the administrative sanction.

“Applying turnover fines for abusing market dominance is an important sanction that encourages dominant entities to comply with the antimonopoly law. In this case, the significant income paid as a fine to the federal budget is due to the consequences of the violation: residents of apartments blocks suffered as they had to pay according to excessive rates”, commented the Head of Marii El OFAS Russia, Evgenii Kostyushin.