OREANDA-NEWS. May 27, 2013. The Federal Arbitration Court of the Moscow District confirmed legitimacy of the decision and determination of the Federal Antimonopoly Service (FAS Russia) and dismissed the cassation claim of “GAZPROM” OJSC.

 The company believed that the antimonopoly body had unduly analyzed the state of competitive environment on the market of liquid sulfur and the Courts of First Instance and Appeal Court had wrongly applied norms of substantive law.

The FAS Commission on the antimonopoly case on the market of liquid sulfur against the group of persons, comprising “GAZPRON” OJSC, “Gazprom Dobycha Orenburg” Ltd., “Gazprom DobychaAstrakhan” Ltd., “Gazprom Sera” Ltd., and “Gazpromtrans” Ltd., found that “GAZPRON” OJSC violated the Federal Law “On Protection of Competition” in the part of fixing monopolistically high prices. For instance, in March 2011 prices for liquid sulfur increased by 246% in comparison with February 2011 and continued rising during the entire year.

“GAZPRON” OJSC supplied information according to which sulfur prices were fixed under a formula depending on the world sulfur prices, diammonuim phosphate (nitrogen-phosphate fertilizer) and on several coefficients. However, the world price for diammonuim phosphate, as well as use of multiplying coefficients with world prices for phosphorus-containing fertilizers cannot be considered the dominant factor for sulfur price and sale conditions on the domestic market. Since it is “GAZPROM” OJSC that sets the pricing mechanism within the group of persons, the case against other members of the group of persons is closed.

Thus, the Courts of three instances supported the position of the antimonopoly body. Based on the outcome of the investigation, FAS issued a determination to hold “GAZPROM” OJSC administratively liable and fine the company over 17.5 million Rubles. “GAZPROM” OJSC attempted to challenge the size of the fine but the Court of First Instance confirmed legitimacy of the FAS decision.

“Suppressing violations of the antimonopoly law on the market of liquid sulfur in the part of fixing monopolistically high price for the good must positively affect a related market of complex mineral fertilizers, which is its main consumer”, commented the Head of FAS Department for Control over Chemical Industry and Agro-Industry, Anna Mirochinenko.