OREANDA-NEWS. June 08, 2011. FAS Russia found that “Russian Railways” OJSC violated Clause 4 Part 1 Article 10 of the Law “On Protection of Competition” by unreasonably preventing provision of services and creating discriminatory conditions regarding particular consignors, reported the press-centre of FAS Russia.

Investigating the case, the FAS Russia’s Commission established that on 23rd August 2010 West Siberian branch of “Russian Railways” OJSC sent a telegram to “EPM-NovEZ” CJSC, by which the company was notified about introduction of a ban for handling and loading of any freight nomenclature, rather than coal for the needs of housing-and-utilities sector and for the energy companies, into the open box cars of inventory stock.

Following the telegram, in August – September 2010 West Siberian branch of “Russian Railways” OJSC failed to fully provide “EPM-NovEZ” CJSC open box cars.

To avoid delivery failures, including export contracts, “EPM-NovEZ” CJSC was forced, as an emergency, to look for the third parties’ cars at and to reregister transportation requests (instead of requests for transportation in the cars of consignors – the “P” list, they were registering requests for transportation in the cars of a third parties – the “C” list). In the opinion of “EPM-NovEZ” CJSC, actions of “Russian Railways” OJSC put the company in an unequal position with other consignors and considerably infringe its interests as such actions lead to violating contract obligations for goods delivery and force to use the cars of third parties, which is associated with additional time and monetary resources.

According to the FAS Russia’s decision, when “Russian Railways” OJSC receives requests for transportation in the cars of consignors (the “P” list) and the carrier does not have cars to execute the request, “Russian Railways” OJSC and “Freight One” OJSC (“PGK” OJSC) must provide cars of “Freight One” OJSC – a subsidiary of “Russian Railways” OJSC - to the consignors.

“Russian Railways” OJSC failed to provide cars for freight transportation by railway transport in general use upon requests approved by “Russian Railways” OJSC, which constitutes abuse of market dominance as the company terminated providing services to a particular consignor without economic or technological justification.

Having investigated the case FAS Russia found that West Siberian branch of “Russian Railways” OJSC violated Clause 4 Part 1 Article 10 of the Law “On Protection of Competition” and issued a determination to “Russian Railways” OJSC based on this decision.

“Lately “Russian Railways” OJSC has been frequently issuing various bans sending telegrams signed by different officials that often do not have the right authority, and are outside the framework of legal acts, and without necessary rationale. The decision is aimed at suppressing this violation and the purpose of the determination is to prevent such violations in the future”, said Deputy Head of FAS Russia, Anatoly Golomolzin.