OREANDA-NEWS. November 19, 2013. Moscow Arbitration Court confirmed legitimacy of the decision made by the Office of the Federal Antimonopoly Service in Moscow (Moscow OFAS Russia) with regard to the Moscow Government that restricted competition on the market of water purification reagents.

Earlier Moscow OFAS Russia found that the Moscow Government violated Part 1 Article 15 of the Federal Law “On Protection of Competition” (competition-restricting actions by the authorities) by omitting to abolish certain Clauses of its own instructions, according to which “Mosvodokanal” Moscow State Unitary Enterprise was obligated to purchase no less than 50,000 tons of a water purification reagent (sodium hypochlorite) per year from a plant, construction of which was funded by WTE Wassertechnik GmbH.

WTE Wassertechnik GmbH disagreed with the decision of Moscow OFAS Russia and filed a lawsuit. Moscow Arbitration Court dismissed the claim and confirmed legitimacy of the actions of the antimonopoly body.

“Mosvodokanal” is a natural monopoly and its incurred costs are included in the water supply tariffs. If instead of organizing tenders or auctions for purchasing reagents under No.223-FZ Federal Law, “Mosvodokanal” is forced to buy the reagents from a certain supplier under forced conditions, it can result in increasing water tariffs”, points the Head of Moscow OFAS Russia”, Rachik Petrosyan.