OREANDA-NEWS. November 08, 2012. The Federal Antimonopoly Service (FAS Russia) found that “Dnerprovagonmash” Public Joint-Stock Company (Ukraine) and “Eurasian Pipeline Consortium” Ltd. (the Russian Federation) violated Part 4 Article 11 of the Federal Law “On Protection of Competition” by concluding and implementing an agreement, which resulted in restricting competition, reported the press-centre of FAS Russia.

The case was initiated upon a petition from “Chelyabinsk Tube-Rolling Mill” OJSC filed to FAS Russia, according to which “Dnerprovagonmash” Public Joint-Stock Company had evaded honouring its obligations for supplying platform cars (13-4107 model).

The FAS Commission revealed that the reason for such actions was 2010 contract between “Dnerprovagonmash” Public Joint-Stock Company and “Eurasian Pipeline Consortium” Ltd. Along with the general contract conditions, “Dnerprovagonmash” undertook obligations to manufacture and supply platform cars exclusively for “Eurasian Pipeline Consortium” Ltd., and supply to other buyers only upon consent from “Eurasian Pipeline Consortium” Ltd.

Executing the conditions of its contract with “Eurasian Pipeline Consortium” Ltd., “Dnerprovagonmash” Public Joint-Stock Company approached the former to agree supplies of platform cars (13-4107 model) to “Chelyabinsk Tube-Rolling Mill” OJSC. However, the company refused and warned about large fines specified by the contract for violating the prohibiting condition.

In 2011, “Pipe Metallurgical Company” OJSC made a commercial offer to “Dnerprovagonmash” Public Joint-Stock Company to buy platform cars (13-4107 model). In spite of the absence of technological or economic restrictions for production and supply of such products, “Dnerprovagonmash” refused the offer.

“In the case in question, we not only exposed the fact of concluding the anticompetitive agreement but also proved repeated incidents of its implementation. The FAS Commission issued a determination to “Eurasian Pipeline Consortium” Ltd. and “Dnerprovagonmash” Public Joint-Stock Company to eliminate all provisions form the contract that contradicted the norms of the Law on protection of competition. The companies will also be held administratively liable”, pointed out Deputy Head of the FAS Department for Control over Industry, Andrey Greshnyov.