OREANDA-NEWS. December 22, 2011. The Federal Antimonopoly Service (FAS Russia) found that “Sverdlov Works” Federal State-Run Enterprise and “Promsintez” OJSC violated Clause 1 Part 1 Article 11 of the Federal Law “On Protection of Competition”.

The companies simultaneously fixed prices for several industrial explosives supplied to “Lebedinsky Mining and Processing Combined Works” OJSC and “Mikhailovsky Mining and Processing Combined Works” OJSC.

Earlier FAS initiated a case upon a petition of “Lebedinsky Mining and Processing Combined Works” OJSC, that complained about actions of manufacturers of industrial explosives.

The FAS Commission concluded that simultaneous fixing of prices for industrial explosives was a result of collusion between “Sverdlov Works” Federal State-Run Enterprise and “Promsintez” OJSC that are competitors on the relevant market.

As a result of such actions, the prices for explosives for the consumers increased considerably and exceeded the general price level set for other buyers. Due to specifics of state regulation of the market, “Lebedinsky Mining and Processing Combined Works” OJSC and “Mikhailovsky Mining and Processing Combined Works” OJSC were unable to change the product suppliers.

“In 2010 the antimonopoly body already held “Sverdlov Works” Federal State-Run Enterprise and “Promsintez” OJSC, and some other manufacturers and suppliers of explosives liable for committing a similar violation. The Courts of three instances unanimously supported FAS decision”, pointed out Deputy Head of FAS Department for Control over Industry and Defence Complex, Andrey Greshnev.