OREANDA-NEWS. November 16, 2011. The Second Arbitration Appeal Court in Kirov upheld the decision and determination of the Office of the Federal Antimonopoly Service in the Yaroslavl Region (Yaroslavl OFAS Russia) on imposing a fine upon “Gazprom Mezhregiongaz Yaroslavl” Ltd., reported the press-centre of FAS Russia.

Earlier Yaroslavl OFAS Russia found that “Gazprom Mezhregiongaz Yaroslavl” Ltd. violated Part 1 Article 10 of the Federal Law “On Protection of Competition”. The company wrongly determined daily gas volumes and “Gazprom Mezhregiongaz Yaroslavl” Ltd. if a customer failed to make the 100% monthly advance payment for the requested monthly gas volume and “Gazprom Mezhregiongaz Yaroslavl” Ltd. Such actions infringed the interests of “Potok” Municipal Unitary Enterprise, because they resulted in increasing the gas payments by 10% in the summer period and by 50% - in the winter period.

The OFAS Commission established that the supplier at its own discretion corrected the daily gas volume, reducing it according to the size of an advance payment. The difference between a corrected gas volume and the actually taken gas volume, “Gazprom Mezhregiongaz Yaroslavl” Ltd. prepared bills applying penalty coefficients for over-contract consumption (1.1 (in summer) and 1.5 (in winter).

Yaroslavl OFAS Russia issued a determination to “Gazprom Mezhregiongaz Yaroslavl” Ltd. to make relevant changes to the gas supply contract with “Potok” Municipal Unitary Enterprise and to transfer 4.9 million Rubles, obtained as a result of the antimonopoly violation, to the federal budget.

The company filed a lawsuit challenging the determination of the antimonopoly body. Yaroslavl Regional Arbitration Court and the Second Arbitration Appeal Court in Kirov pronounced legitimacy and reasonableness of the decision and determination of Yaroslavl OFAS Russia.

“The Court confirmed our position. “Gazprom Mezhregiongaz Yaroslavl” Ltd. must execute the determination within a month. The Code of the Russian Federation for Antimonopoly Violations specifies penal sanctions for failure to execute the determination within the designated period. Compliance with binding rules and norms is the basis of statehood. Article 10 of the Civil Code of the Russian Federation does not allow using civil rights in order to restrict competition as well as abuse market dominance. Gas suppliers that have dominant market position must keep strict watch over their actions, they have special responsibility because it is them who can exercise decisive influence upon economic situation in Russia in general and in separate provinces”, commented Deputy Head of Yaroslavl OFAS Russia, Mr. Ivan Pautov.