OREANDA-NEWS. September 01, 2011. Experts from Russian and Ukrainian competition authorities discussed problems of Russian motor fuel market at the Round Table about “Controversial Issues in the Work of Antimonopoly Bodies of Russia and Ukraine and the Avenues for Resolving Them”, reported the press-centre of FAS Russia.

Deputy Head of FAS Russia Anatoly Golmolzin informed his Ukrainian colleagues about practices of the Russian antimonopoly authority in revealing violations in the fuel-and-energy complex.

At the end 2010 – beginning of 2011 regional offices of FAS Russia initiated over 70 cases for violating the antimonopoly law on the markets of oil products.

“FAS receives complaints from independent market players either that they are unable to purchase oil products, or that their economic activities become unprofitable due to high purchasing prices”, said Deputy Head of FAS Russia Anatoly Golmolzin. “At the same time oil companies refer to difficulties associated with exchange trade due to the Technical Regulations coming into force, controversial pricing on domestic market, and none of the companies was able to justify the reasons for such inadequate price behaviour”.

In 2008, 2009 and 2011 FAS investigated the “three waves” of oil cases on antimonopoly violations on the fuel-and energy complex. Such violations included: fixing monopolistically high prices for oil products; creating discriminatory conditions for the buyers on wholesale markets of oil products in the Russian Federation; fixing economically, technologically and otherwise unjustified different prices for oil products.

Initially some court rulings were to the benefit of FAS and some to the benefit of the oil companies. From the very outset it was clear that the final ruling will be passed by the Supreme Judicial Body. The Supreme Arbitration Court passed two precedent rulings: on a case against “TNK-BP Holding” OJSC (the “first wave” of cases) and a case against “Gazpromneft” OJSC (the “second wave”). On both cases FAS decisions, determinations and orders to impose fines were pronounced legitimate and reasonable Total fines transferred to the federal budget by the violators exceeded 15 billion Rubles.

“During the “third wave”, the oil companies decided not to litigate with FAS and in course of case proceedings admitted committing the violations. The goal is that companies’ lawyers should start working on preventing antimonopoly violations rather than eliminating their consequences.

Today FAS proposes a number of legislative measures aimed at developing competition on domestic market of oil products.

- Implementing the provisions of the “third antimonopoly package”, in the part of creating conditions for liquid exchange trading;

- Redistributing fiscal burden upon oil companies to stabilise the situation on the markets of oil products;

- Passing the draft laws “On Market Pricing for Oil and Oil Products in the Russian Federation” and “On Turnover of Oil and Oil Products in the Russian Federation”.

The two draft laws “On Market Pricing for Oil and Oil Products in the Russian Federation” and “On Turnover of Oil and Oil Products in the Russian Federation” prepared by FAS Russia are aimed at creating conditions for effective performance of the markets of oil and oil products.