OREANDA-NEWS.  October 19, 2012. The 9th Arbitration Appeal Court in Moscow upheld the judgment of Moscow Arbitration Court and pronounced validity of FAS decision and determination regarding “Russian Railways” OJSC, reported the press-centre of FAS Russia.

On 18th January 2012, found that “Russian Railways” OJSC violated Part 5 Article 11 of the Federal Law “On Protection of Competition”. The FAS Commission concluded that “Russian Railways” OJSC coordinated activities of consumers of cabling-and-wiring products that had significantly reduced sale of the products of economic entities – not members of the same group of persons with “Russian Railways” OJSC.

The case was initiated upon a petition of “TransKatKabel” CJSC – a manufacturer of carrier cables and overhead copper and bronze conductors used by “Russian Railways” OJSC.

“Russian Railways” OJSC sent telegrams to the contractors carrying out the works for railway electrification, requesting them to buy on a priority basis the products made by “TRANSKAT” CJSC, which is a member of the same group of persons with “Russian Railways” OJSC and also is a direct competitor - “TransKatKabel” CJSC, while cabling-and-wiring products of other manufacturers can only be obtained upon an approval by Electrification and Energy Supply Department of “Russian Railways” OJSC.

Explaining the reasons for sending the telegrams, “Russian Railways” OJSC stated the products of “TransKatKabel” CJSC did not meet quality requirements. However, investigating the case FAS established that the products supplied by the companies had passed mandatory certification and can be used on the facilities of “Russian Railways” OJSC.

As a result of such actions of “Russian Railways” OJSC, sale of cabling and wiring products manufactured by “TransKatKabel” CJSC reduced by 15 times and supplies of overhead lines and carrier cables are practically terminated in the Russian Federation.

“In view of the above decision of the Federal Court of Law “Russian Railways” OJSC must execute the FAS determination in the near future and withdraw all telegrams sent to the contractors instructing them to buy cabling-and-wiring products from “TRANSKAT” CJSC”, pointed out Deputy Head of FAS Department for Control over Industry and Defence Complex, Andrey Greshnev.