OREANDA-NEWS. April 11, 2011. The Federal Antimonopoly Service (FAS Russia) initiated a case against “IPP” OJSC upon the signs of violating Article 10 of the Federal Law “On Protection of Competition” (abusing market dominance), reported the press-centre of FAS Russia.

The case was initiated upon a collective petition of “Trans Oil Service” Ltd., “ERA” Ltd., “Trasnbunker-Novo” Ltd. and “Chernomorskaya Buksirnaya Kompania” Ltd. that approached FAS Russia on 13th December 2010. According to these companies, “IPP” OJSC infringed their interests by terminating contracts for the services of accepting, accumulating and shipping oil products.

As stated by the petitioners, “IPP” Ltd. owns the only specialised terminal in Novorossiysk Seaport providing technological process of bunkering, including mandatory transshipment of oil products through specialised terminals (accepting oil products, accumulating them in shore-based terminals and loading to bunkering vessels).

In January 2009 “IPP” OJSC concluded contracts for the services for accepting, accumulating and shipping oil products with all economic entities that provide bunkering services.

In December 2010 “IPP” OJSC sent letters to “Trans Oil Service” Ltd., “ERA” Ltd., “Trasnbunker-Novo” Ltd. and “Chernomorskaya Buksirnaya Kompania” Ltd. about terminating the contracts, where indicated the by the end of the calendar month, when the notice was received, the contracts should be considered terminated.

According to the petitioners, unlawful actions of “IPP” OJSC can put on halt operations of “Trans Oil Service” Ltd., “ERA” Ltd., “Trasnbunker-Novo” Ltd. and “Chernomorskaya Buksirnaya Kompania” Ltd.

Investigating the case, FAS experts established that actions of “IPP” OJSC in the part of terminating the contracts for the services of accepting, accumulating and shipping oil products prevent economic activities of the bunkering companies as their operations are impossible without obtaining oil products from the specialised terminal. Thus, “IPP” OJSC prevented equal access to the services provided by a holder of natural transport monopoly by terminating the contracts, effectively eliminating competition on the market of bunkering services in Novorossiysk Seaport.

On the basis of the inspection findings, FAS made a decision to initiate a case against “IPP” OJSC upon the signs of violating Article 10 of the Federal Law “On Protection of Competition”.