OREANDA-NEWS. August 09, 2011. Chelyabinsk Regional Arbitration Court confirmed legitimacy of the determination of Chelyabinsk OFAS Russia that imposed a fine upon “Gazprom Mezhregiongaz Chelyabinsk” Ltd. However, the Court ruled to reduce the fine from 3.5 million Rubles to 2.1 million Rubles, reported the press-centre of FAS Russia.

“Gazprom Mezhregiongaz Chelyabinsk” Ltd. was fined for imposing disadvantageous contract conditions for gas supply in 2008 upon “Zlatoust Machine-Building Works” OJSC. Chelyabinsk OFAS Russia found that the gas company violated Part 1 Article 10 of the Federal Law “On Protection of Competition” (abusing market dominance).

“The gas company insisted on including certain provisions in the contracts that established customer liability in the form of penalty coefficients for overtaking gas and forfeit payments for incomplete gas-taking. Contract provisions that establish excessive customer liability that are not provided for by the current law of the Russian Federation are disadvantageous for customers. The Law “On Gas Supply in the Russian Federation”, the Civil Code of the Russian Federation and other normative legal acts regulating gas supply do not establish liability of gas consumers for failure to execute contract provisions on the gas volumes. Under the Gas Supply Rules, if excessive gas is outtaken, the price is increased by applying increasing coefficients. These coefficients are pricing elements rather than sanctions”, explained the Head of Chelyabinsk OFAS Russia, Anna Kozlova.

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FAS Russia would like to emphasise that disadvantageous contract conditions must not be imposed. (“The Minutes of the Meeting on long-term contract provisions proposed by gas supplying organisations of “Gazprom” OJSC to gas consumers”).

Court rulings confirm legitimacy and reasonableness of the position of FAS Russia. In particular, on 14th April 2009 the Presidium of the Supreme Arbitration Court of the Russian Federation considered a case of Karachaevo-Cherkessia OFAS Russia against “Kavkazregiongaz” Ltd. and ruled to forbid disadvantageous contract conditions and determined that the legal essence of additional penalty coefficients applied to calculate payments for the gas consumed in excess of the contract volume is a pricing element. On 2nd July 2009 the Supreme Arbitration Court of the Russian Federation also confirmed legitimacy of a similar decision made by Chelyabinsk OFAS Russia regarding “Chelyabinskregiongaz” Ltd.

Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) by an economic entity with dominant position, that have resulted or can result in preventing, restricting, eliminating competition and (or) infringing the interests of other persons, particularly, imposing disadvantageous contract conditions upon a counteragent or conditions irrelevant to the contract subject, violating pricing procedures established by normative legal acts.