OREANDA-NEWS. September 09, 2013. On 28th August 2013, the Federal Arbitration Court of Volga-Vyatka District dismissed the cassation appeal of “Gazenergoset- Nizhny Novgorod” Ltd. challenging the decision of the Office of the Federal Antimonopoly Service in the Nizhny Novgorod region (Nizhny Novgorod OFAS) on the case on violating pricing procedures while selling liquefied hydrocarbon gas.

On 28th April 2012, the Commission of Nizhny Novgorod OFAS found that “Gazenergoset- Nizhny Novgorod” Ltd. violated pricing procedures selling liquefied hydrocarbon gas in 5l balloons for the household needs (Article 10 of the Federal Law “On Protection of Competition”).

Investigating the case, Nizhny Novgorod OFAS established that “Gazenergoset- Nizhny Novgorod” Ltd. has dominant position on the market of retail sale of liquefied hydrocarbon gas in 5l balloons for the household needs. From 4th January 2010, selling the goods the monopolist did not apply the prices fixed by the Regional Tariff Service of the Nizhny Novgorod Region and instead increased them by 2-3 times.

In accordance with the Decrees by the Government of the Russian Federation, prices for liquefied hydrocarbon gas for the household needs of the population is subject to state regulation and shall be fixed based on techniques approved by the Federal Tariff Service (wholesale prices) and executive bodies of the constituent territories of the Russian Federation.

On 9th July 2012 Nizhny Novgorod OFAS fined the company 737,500 Rubles for committing unlawful actions.

The company attempted to defend its position at Court but Nizhny Novgorod Arbitration Court, the First Arbitration Appeal Court and the Federal Arbitration Court of Volga-Vyatka District dismissed the claim of the monopolist and pronounced legitimacy of the actions undertaken by the antimonopoly body.