OREANDA-NEWS. January 30, 2012. The Federal Antimonopoly Service (FAS Russia) found that “Russian Railways” OJSC violated Part 5 Article 11 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

The Commission of FAS Russia concluded that “Russian Railways” OJSC exercised actions aimed at coordinating activities of consumers of cabling and wiring products, as a result of which considerably reduced the volume of sales of production of economic entities – not members of the group of persons of “Russian Railways” OJSC.

The case was initiated upon a petition of “TransKatKabel” CJSC – a producer of bearer cables, contact copper and contact bronze wires, used for the needs of “Russian Railways” OJSC.

“Russian Railways” OJSC sent telegrams to consumers of cabling and wiring products used at facilities of “Russian Railways” OJSC, stating that on a priority basis they should purchase the products of “TRANSKAT” CJSC, that is a members of the same group of persons with “Russian Railways” OJSC and is a direct competitor of “TransKatKabel” CJSC, and cabling and wiring products of other producers should be purchased only upon approval by the Department of Electrification and Electric Power Supply of “Russian Railways” OJSC.

As a result of such actions, production of cabling and wiring products of “TransKatKabel” CJSC reduced by 15 times, while supplies of contact wires and bearer cables in the Russian Federation almost fully terminated.

““Russian Railways” OJSC practically banned its contracting organizations to buy the products of “TransKatKabel” CJSC, that has all necessary certificates of quality and допущенную to use on facilities of “Russian Railways” OJSC, which effectively pushed “TransKatKabel” CJSC” from the market”, commented Deputy Head of the Department for Control over Industry and Defence Complex, Mr. Andrey Greshnyov.

Reference:

Part 5 Article 11 of the Federal Law “On Protection of Competition” prohibits physical persons, commercial organizations and non-commercial organizations to coordinate activities of economic entities if such coordination leads to any of the consequences specified in Parts 1 - 3 of this Article, that cannot be found acceptable in accordance with Articles 12 and 13 of this Federal Law or that are not provided for by the federal law.