OREANDA-NEWS. May 27, 2013. The Federal Arbitration Court of the North Caucasus District confirmed legitimacy of the fine (862,510 Rubles) imposed by the Office of the Federal Antimonopoly Service in the Republic of Dagestan (Dagestan OFAS Russia) upon “LUKOIL-Rostovenergo” Ltd. for unlawfully terminating supplies of heating energy.

Earlier Dagestan OFAS Russia found that “LUKOIL-Rostovenergo” Ltd. violated the antimonopoly law (Part 1 Article 10 of the Federal Law “On Protection of Competition”). The company stopped supplying heating energy to “Dagdiesel” Plant” OJSC, Border Control Department of the Federal Security Service and several other consumers in Kaspiisk. OFAS issued a determination to the company to restore heating supply to the above customers.

Dagestan OFAS Russia also held “LUKOIL-Rostovenergo” Ltd. administratively liable under Article14.31 of the Code of the Russian Federation on Administrative Violations and fined the company 862,510 Rubles.

“LUKOIL-Rostovenergo” Ltd. disagreed with the fine and tried to challenge it at Dagestan Arbitration Court, which dismissed the claim.

On 13th February 2013, the 16th Arbitration Appeal Court upheld the judgment of the Court of First Instance and dismissed the appeal of “LUKOIL-Rostovenergo” Ltd.

Upon completing judicial proceedings, “LUKOIL-Rostovenergo” Ltd. paid the administrative fine and submitted the payment voucher to Dagestan OFAS Russia.

At the same time the company lodged a cassation appeal to the Federal Arbitration Court of the North Caucasus District to reverse the OFAS decision and the rulings of the Courts of lower instances and invalidate the fine. The Cassation Court also dismissed the claim of “LUKOIL-Rostovenergo” Ltd.

“Timely issuing of a determination by Dagestan OFAS Russia that prohibited the violation committed by “LUKOIL-Rostovenergo” Ltd. enabled to restore supplying heating energy to strategic military facilities in Kaspiisk, and prevented frustrating state defence procurement. Courts of two instances earlier confirmed legitimacy of the fine imposed by the antimonopoly body for the exposed violation, so the ruling of the Federal Arbitration Court of the North Caucasus District was logical”, the Head of Dagestan OFAS Russia Kurban Kubasaev commented the situation.