OREANDA-NEWS. August 03, 2012. “Ulyanovsknefteproduct” CJSC will not be able to acquire ownership of the fixed production assets of “Divny Mir” Ltd., specializing in storage and warehousing of oil products, reported the press-centre of FAS Russia.

The Federal Antimonopoly Service (FAS Russia) did not grant a petition of “Ulyanovsknefteproduct” CJSC (a subsidiary of “Rosneft” OJSC). The company, specializing in wholesale and retail sales of motor fuel, intended to buy 48.5% of balance-sheet value of the fixed production assets and intangible assets of “Divny Mir” Ltd. The Antimonopoly Service analyzed competitive environment on the retail market of motor petrol and diesel fuel within the boundaries of Ulyanovsk. The findings showed that the subsidiary of “Rosneft” OJSC (“Ulyanovsknefteproduct” CJSC) had the dominant position on the market. FAS established that the petitioned transaction would restrict competition.

Therefore, FAS refused to grant a petition of “Ulyanovsknefteproduct” CJSC.

“We support companies’ aspiration to develop competition in the regions. FAS always welcomes entry of new participants to the retail market. We believe, however, that companies should use good practical sense considering in which regions they plan to enlarge their networks of service stations. If a company dominates the market, then by buying a large share of vertically-integrated oil companies in the region, it becomes a monopolist. It can result in restricting competition”, commented the Head of FAS Department for Control over Fuel-and-Energy Complex, Nadezhda Dianova.