OREANDA-NEWS. June 14, 2012. In May - June 2012, Courts of Law supported a decision of the Antimonopoly Service regarding the West-Siberian branch of “Russian Railways” OJSC and a turnover fine in the size of 82 million Rubles, reported the press-centre of FAS Russia.

On 5th June 2012, Moscow Arbitration Court accepted the arguments put forward by the antimonopoly authority and dismissed the arguments of the West-Siberian branch of “Russian Railways” OJSC. The Courts also upheld the fine (82 million Rubles) for violating the antimonopoly law on the market of railway transportation.

On 31st May 2012, the Federal Arbitration Court of the Moscow District upheld FAS decision regarding the railway company.

In summer 2011, FAS found that “Russian Railways” OJSC violated the antimonopoly law in the part of unreasonably terminating services and creating discriminatory conditions for some consignors (Clause 4 Part 1 Article 10 of the Federal Law “On Protection of Competition”).

Investigating the case, the FAS Commission established that on 23rd August 2010 the West-Siberian branch of “Russian Railways” OJSC issued a telegram to prohibit handling and loading any other freight nomenclature, except coal for the needs of Housing & Utility sector and to utility companies, to gondola cars of inventory rolling stock.

Following the telegram, in August - September 2010 the West-Siberian branch of “Russian Railways” OJSC failed to provide gondola cars to “EPM-NovEZ” CJSC to the full extent.

To avoid supply disruptions, in particular, on export contracts, “EPM-NovEZ” CJSC had to seek cars from the third parties as an emergency procedure and reregister transportation applications (register “C” applications for transportation in the cars of third parties instead of “P” applications for transportation in the carrier’s cars). According to “EPM-NovEZ” CJSC, actions of “Russian Railways” OJSC put the company in an unequal position in comparison with other consignors and considerably infringed the company interests. It resulted in breaching supply contract obligations and forced the company to use cars of the third parties, which required additional time and financial resources.

Having investigated the case, FAS found that the West-Siberian branch of “Russian Railways” OJSC violated the Federal Law “On Protection of Competition” and issued a determination to the violator.

FAS also fined “Russian Railways” OJSC 82 million Rubles under Article 14.31 of the Code on Administrative Violations.

The West-Siberian branch of “Russian Railways” OJSC challenged the decision and the fine imposed by the Antimonopoly Service at Courts.

On 31st May 2012, the Federal Arbitration Court of the Moscow District upheld the FAS decision regarding the railway company.

On 5th June 2012, Moscow Arbitration Court upheld the 82-million fine imposed upon the West-Siberian branch of “Russian Railways” OJSC.