OREANDA-NEWS. March 09, 2012. The Federal Arbitration Court of the Povolzhie Region in Kazan pronounced legitimacy of the decision and determination of the Office of the Federal Antimonopoly Service in the Ulyanovsk Region (Ulyanovsk OFAS Russia) regarding “Ankar” Milling Company” Ltd., “Dmitrovgradkrupzavod” OJSC, “Melservice” Ltd. and an individual entrepreneur, reported the press-centre of FAS Russia.

On 5 - 19 July 2010, the milling companies in the Ulyanovsk region considerably increased prices for wheat flour. Selling prices for wheat flour started growing before purchasing prices for grain increased. Within two weeks prices for the high grade flour increased from 22.2% to 59.1%. Ulyanovsk OFAS Russia found that the companies violated Clause 1 Part 1 Article 11 of the Federal Law “On Protection of Competition”.

The antimonopoly body fined “Ankar” Milling Company” Ltd. 2 million Rubles, “Dmitrovgradkrupzavod” OJSC – 192,000 Rubles, “Melservice” Ltd. – 101,000 Rubles and the individual entrepreneur –20,000 Rubles.

The individual entrepreneur paid the fine without any judicial proceedings. Other participants of the cartel challenged the actions undertaken by the antimonopoly body and filed a lawsuit.

Ulyanovsk Regional Arbitration Court upheld the decision and determination of Ulyanovsk OFAS Russia. The 11th Arbitration Appeal Court (Samara) did not agree with the conclusions made by the antimonopoly body. The Federal Arbitration Court of the Povolzhie Region reversed the ruling of the Appeal Court.

“Keeping a close watch on each other’s actions, the economic entities could mutually influence each other. Possibility of repetitive conduct is secured even without any written agreement and information exchange. It is very important that we were able defend our conclusions at Court because such actions must not be left unpunished”, pointed out the Head of Ulyanovsk OFAS Russia, Gennady Spirichagov.