OREANDA-NEWS. November 18, 2011. Moscow Arbitration Court dismissed the claim of “GLOBEXBANK” CJSC to invalidate the fine (300,000 Rubles) imposed upon the bank by the Federal Antimonopoly Service (FAS Russia), reported the press-centre of FAS Russia.

In April 2011, referring to Article 30 of the Federal Law “On Protection of Competition”, “GLOBEXBANK” CJSC informed FAS that the bank had acquired 83% voting shares of “NATSIONALNY TORGOVY BANK” OJSC (“NTB” OJSC).

Examining the notification, FAS found that the transaction in question was subject to preliminary approval under Article 29 of the Federal Law “On Protection of Competition”.

According to Article 29 of the Federal Law “On Protection of Competition”, preliminary approval of transactions involving financial organisations is required, in particular, when the assets of a financial organisation exceed the value specified by the Government of the Russian Federation.

No.335 Decree of the Government of the Russian Federation of 30th May 2007 established such value for credit organisations, which, as specified in Clause 8 of the Decree, must be determined on the basis of a turnover balance sheet of credit organisations.

“GLOBEXBANK” CJSC explained that it had not filed the petition for preliminary approval of the deal because of the fact that “NTB” assets value had not exceeded the value set by the Government of the Russian Federation. Determining the size of the assets, “GLOBEXBANK” CJSC used the balance sheet data.

According to the turnover balance sheet, however, at the time of the notified transaction the assets of “NTB” OJSC exceeded the value specified by the Government of the Russian Federation.

Upon the fact of failure to file a petition, FAS held “GLOBEXBANK” CJSC administratively liable under Part 3 Article 19.8 of the Code of the Russian Federation on Administrative Violations.

Reference:

Under Clause 1 Part 1 Article 29 of the Federal Law “On Protection of Competition”, if the assets value according to the latest balance sheet of a financial organisation exceeds the value set by the Government of the Russian Federation (such value shall be established by the Government of the Russian Federation upon consent of the Central Bank of the Russian Federation for transactions with shares (equity stakes), assets of a credit organisation or the rights with regard to a credit organisation), the following transactions – acquiring shares (equity stakes), assets of a credit organisation or the rights with regard to a credit by a person (a group of persons) voting shares of a shareholding company require preliminary approval by the antimonopoly authority, when such person (the group of persons) obtains the right to control over 25% of the above shares if before the acquisition the person (the group of persons) did not control voting shares of the shareholding company or controlled no more than 25% of voting shares of the shareholding company.

Under Clause 3 No.335 Decree of the Government of the Russian Federation of 30th May 2007, 33 billion Rubles is the assets value according to the latest balance sheet of a credit organisation, exceeding which a preliminary approval from the antimonopoly authority must be obtained to exercise transactions with shares (equity stakes), assets of a credit organisation or the rights with regard to a credit organisation. Under Clause 8 of the Decree, the assets value of credit organisations on the latest balance sheet shall be determined on the basis of the turnover balance sheet of credit organisations.

Part 3 Article 19.8 of the Code of the Russian Federation on Administrative Violations specified administrative liability for failure to file petitions required by the antimonopoly law of the Russian Federation to the federal antimonopoly authority: an administrative fine upon members of general public from 1500 Rubles to 2500 Rubles, upon officials – from 15,000 Rubles to 20,000 Rubles and upon legal persons – from 300,000 Rubles to 500,000 Rubles.