OREANDA-NEWS. October 27, 2011. “Lukoil-Volganefteproduct” Ltd. paid over 30 million Rubles as a fine imposed by the Office of the Federal Antimonopoly Service in the Republic of Chivashia (Chuvashia OFAS Russia) in July 2009 for violating the antimonopoly law, reported the press-centre of FAS Russia.

In April 2009, the Commission of Chuvashia OFAS Russia found that “Lukoil-Volganefteproduct” Ltd. violated Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition”. In November 2008 – December 2009 the company abused dominant position on the retail markets of АI-92 and АI-95 gasoline in Cheboksary, Novocheboksarsk and Cheboksary region. The antimonopoly body also found that the company violated Clause 6 Part 1 Article 10 of the Federal Law “On Protection of Competition” by fixing different prices for the same type of oil products on filling stations in Cheboksary without any economic, technological and other reasons.

“Lukoil-Volganefteproduct” Ltd. filed a lawsuit challenging the decision of Chuvashia OFAS Russia.

Legal proceedings lasted nearly three years.

The Arbitration Court of the Republic of Chuvashia and the 1st Arbitration Appeal Court pronounced legitimacy of the arguments put forward by the oil company that the antimonopoly body wrongly determined geographic boundaries of the market and the time-frame of the analysis.

However, in June 2010, the Federal Arbitration Court of the Volga-Vyatka District reversed the previous rulings of the Courts of Lower Instances and forwarded the case for reconsideration. As a result, the Courts of two instances took the side of Chuvashia OFAS Russia. On 14th June 2011, the Federal Arbitration Court of the Volga-Vyatka District issued the final ruling confirming the rightness of the arguments formulated by the antimonopoly body.

“Lukoil-Volganefteproduct” Ltd. also challenged the order to impose a fine upon the company and filed a lawsuit. In July 2011 the Court of First Instance and in September 2011 the Appeal Court found the size of the fine legitimate and reasonable.

“The decision and determination of the regional antimonopoly body was fully supported by the courts. Thus, the fact of abusing market dominance was not only confirmed but the oil company was seriously punished the violations committed. This is the first time when such a large fine was paid in the Republic of Chuvashia”, commented the Head of Chuvashia OFAS Russia, Vyacheslav Borisov.