OREANDA-NEWS. November 30, 2012. The 16th Arbitration Appeal Court confirmed legitimacy of the fine imposed by the Office of the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) upon “Daggaz” OJSC, reported the press-centre of FAS.   

Earlier Dagestan OFAS Russia carried out an inspection and found that “Daggaz” OJSC had failed to timely inform the antimonopoly authority and had not obtained a consent for concluding a contract with “Dag-S-Gaz” Ltd. for leasing gas pipelines.

To assess legitimacy of the transaction, Dagestan OFAS Russia requested the necessary information from “Daggaz” OJSC; however, the economic entity submitted unreliable documents in violation of Article 25 of the Federal Law “On Protection of Competition”.

Governed by Part 5 Article 19.8 of the Code of the Russian Federation on Antimonopoly Violations, Dagestan OFAS Russia fined “Daggaz” OJSC 500,000 Rubles.

The company filed a lawsuit to Dagestan Arbitration Court, which confirmed legitimacy of the fine but reduced it to 300,000 Rubles.

“Daggaz” OJSC appealed the judgment to the 16th Arbitration Appeal Court, which dismissed the appeal and upheld the judgment of Dagestan Arbitration Court.

The Acting Head of Dagestan OFAS Russia, Dzhamilya Khalayeva, commented the Court ruling: “Within their scope of reference, FAS Russia and its regional offices can send a reasoned request to firms, companies, organizations, institutions, agencies and ministries. Thus, ignoring our requests for submitting information or submitting unreliable information, as with “Daggaz” OJSC, will be punished in accordance with the law”.

Under Article 25 of the Federal Law “On Protection of Competition”, commercial and non-commercial organizations, federal executive bodies, the authorities of the constituent territories of the Russian Federation, local self-government bodies, state extra-budgetary funds, physical persons, in particular, individual entrepreneurs must submit, upon a reasonable request, reliable documents in their entirety to the antimonopoly authority within the designated period, that the antimonopoly body needs to fulfill its powers.