OREANDA-NEWS.  December 24, 2013. The Federal Antimonopoly Service (FAS Russia) imposed a turnover fine upon “Siberian Chemical Company” Ltd. – 123.5 million RUB for taking part in a cartel on the market of suspension polyvinyl chloride PVC-S).

Thus, FAS completed the procedure of holding the participants of the cartel on the PVC-S market administratively liable.

In December FAS found that “United Trade Company” OJSC, “Sayanchimplast” OJSC, “Caustic” OJSC (Volgograd), “Siberian Trading Company” Ltd., “Caustic” OJSC (Sterlitamak), “Bahkirian Chemistry” OJSC and “NIKOKHIM” Ltd. violated Clause 3 Part 1 Article 11 of the Federal Law “On Protection of Competition” by participating in an agreement that led or could have led to dividing PVC-S market under the volume of sales in 2005 - 2009.

Having investigated the case, FAS forwarded the case materials to the Ministry of Interior to initiate a criminal case under Article 178 of the Criminal Code.

The total fines imposed upon cartel participants on PVC-S market reached 683.9 million RUB.

Investigating antimonopoly violations on the chemical markets, FAS revealed that to hamper investigations by the antimonopoly authority and escape administrative liability, some violators “remove” assets from companies, decrease the authorized capital and reregister companies to other regions in the Russian Federation.

Such companies, in particular, include “Siberian Chemical Company” Ltd., which in different periods sold up to 90% of PVC-S produced by “Sayankhimplast” OJSC.

The antimonopoly case was initiated on 10.05.2012.

After the antimonopoly case was opened, the founder and the sole executive body of “Siberian Chemical Company” Ltd. changed (20.07.2012), the authorized capital was reduced from 10.1 million RUB to 10,000 RUB (21.08.2012), and organization was reregistered from Irkutsk where it operated to Kazan. According to FAS, the company is not involved in commercial activity at its new location.

It is not the first similar incident with traders of “Sayanchimplast” OJSC. Earlier, at similar circumstances another trader of the plant was liquidated – “Sibmanagement Group” Ltd., which is involved in sales of caustic soda and is a respondent in a relevant antimonopoly case.

FAS plans to approach the law enforcement and tax bodies to carry out inspections.

“By imposing an antimonopoly fine upon “Siberian Chemical Company” Ltd., we competed the procedures of holding “Siberian Chemical Company” Ltd. administratively liable on PVC-S market. It the past years FAS investigated antimonopoly cases on the markets of caustic soda, hepsol, PVC, baking soda. FAS routinely monitors the state of competition on the markets. In our estimate the situation on chemical markets is changing for the better”, said Deputy Head of FAS, Alexander Kinev.

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PVC-S is widely used in manufacturing window bays, siding, cable channels, building panels, window sills, stretch ceilings, cable and medical plastic compounds, medical products, artificial leather, sewage pipes, extra-strong pipes, cultural and household goods, etc.