OREANDA-NEWS. August 13, 2012. After lengthy judicial proceedings the decision of the Antimonopoly Service regarding “LUKOIL-Rostovenergo” Ltd. is pronounced legitimate. The company stopped supplying heating energy in the form of steam to “Dagdiesel” Works” OJSC, and was held liable in accordance with the antimonopoly law, reported the press-centre of FAS Russia. 

On 6th August 2012, the 16th Arbitration Appeal Court upheld the decision and determination of the Office of the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) regarding “LUKOIL-Rostovenergo” Ltd.

Dagestan OFAS Russia found that “LUKOIL-Rostovenergo” Ltd. violated Part 1 Article 10 of the Federal Law “On Protection of Competition” for unilaterally terminating a contract and terminating heating energy supplies to the Works.

The antimonopoly body issued a determination to the company to stop the violation and resume supplies of heating energy until the end of the heating season to “Dagdiesel” Works” OJSC, No.2372 military unit, “Energetik” Health Resort” OJSC and “Border Control Department of the Federal Security Service of the Russian Federation in the Republic of Dagestan” Federal State Institution.

“LUKOIL-Rostovenergo” Ltd. challenged the decision and determination of the Antimonopoly Service at Courts. The Arbitration Court of the Republic of Dagestan and the 16th Arbitration Appeal Court initially took the side of the company.

The Federal Arbitration Court of the North Caucasus District, however, disagreed with the conclusions of the Courts of lower instances and forwarded the case for reconsideration.

The Arbitration Court of the Republic of Dagestan and the 16th Arbitration Appeal Court reconsidered the case against “LUKOIL-Rostovenergo” Ltd. and unanimously pronounced legitimacy of the decision and determination issued by the Antimonopoly Service. The company’s claim was dismissed.

“Not only actions of “LUKOIL-Rostovenergo” Ltd. are contrary to the antimonopoly law, but they also could have breached the state security. Courts of two instances supported our decision”, pointed out the Head of Dagestan OFAS Russia, Kurban Kubasaev.