OREANDA-NEWS. December 16, 2013. The Commission of the Federal Antimonopoly Service (FAS Russia) found that a group of persons comprising “Gazprom” OJSC, “Gazprom Komplektatsia” Ltd. and “Gazprom Tsentrremont” Ltd. (the Gazprom Group) abused its dominance (in breach of Part 1 Article 10 of the Federal Law “On Protection of Competition”) and terminated the proceedings due to voluntary elimination of violations of the antimonopoly law.

The Gazprom Group is the largest consumer of large-diameter pipes in the Russian Federation (with consumption level at 50%), has, as consumer the dominant position on the market and has a possibility to influence the general conditions of circulation of large-diameter pipes.

The FAS Commission established that actions of the Gazprom Group in procurement of large-diameter pipes that could result and in some cases resulted in restricting competition on the markets of large-diameter pipes in 2008 - 2011.

Thus, the Gazprom Group as a consumer of large-diameter pipes abused its market dominance in procurement of large-diameter pipes.

At the same time in 2012 - 2013 the Gazprom Group exercised a series of measures aimed at improving the system of procurement and development of competition on the markets of large-diameter pipes.

As a result of changing procurement strategy of the Gazprom Group, manufacturers of large-diameter pipes have a possibility to take part in competitive procurement organized by the Gazprom Group.

In view of the above, the FAS Commission decided to terminate the case initiated upon signs of violating Part 1 Article 10 of the Federal Law “On Protection of Competition” by the Gazprom Group due to voluntary elimination of violations of the antimonopoly law.

The FAS Commission also issued determinations to “Gazprom” OJSC, “Gazprom Komplektatsia” Ltd. and “Gazprom Tsentrremont” Ltd. to prevent actions that can lead to restricting, eliminating competition and violating the antimonopoly law on the markets of electro-welded large-diameter pipes in competitive procurement of large-diameter pipes, and to exercise actions towards protecting competition on the markets of large-diameter pipes.

The investigation of the case upon signs of agreements between economic entities (in violation of Part 4 Article 11 of the Federal Law “On Protection of Competition”) against “SETP” Ltd. and the Gazprom Group is terminated due to absence of violating of the antimonopoly law in the actions investigated by the Commission.

The Chairman of the Commission, Stats-Secretary, Deputy Head of FAS Andrey Tsarikovsky commented the decision: “The FAS Commission made a decision to issue determinations to the Gazprom Group to prevent violations of the violations of the antimonopoly law and supporting competition on the markets of large-diameter pipes. FAS will continue monitoring the situation in procurement of large-diameter pipes”.