OREANDA-NEWS. January 27, 2014. Moscow Arbitration Court pronounced legitimacy of the decision and determination to impose administrative fines by the Federal Antimonopoly Service (FAS Russia) with regard to the majority of producers and sellers of liquid caustic.

Judicial proceedings upon petitions of “United Trade Company” OJSC, “GaloPolimer Kirovo-Chepetsk” Ltd., “Galopolimer” OJSC, “Caustic” OJSC (Sterlitamak), “Caustic” OJSC (Volgograd), “Siberian Chemical Company” Ltd., “Sayankhimplast” OJSC, “Sibmanagement” Ltd., “Sibur-Neftekhim” OJSC, “Novomoskovsky Khlor” Ltd., “Azot” Novomoskovsk Shareholding Company” OJSC, “EvroKhim” MKhK” OJSC, “Reagenty” Scientific-Production Association” CJSC, “Khimprom” Trading House” Ltd., “Khimprom” Production Association” Ltd., “Sibur Holding” CJSC, “NIKOKHIM” Ltd., “Bashkirskaya Khimia” OJSC, “Sibur” Ltd., “Khimprom” Volgograd OJSC, “Khimprom” OJSC, and “Renova Ortgsintez” CJSC have been lasted since the beginning of 2012.

In December 2011, FAS found that over 20 companies in chemical industry violated Clauses 1, 3, and 4 Part 1 Article 11 of the Federal Law “On Protection of Competition” by participating in an agreement that led or could have led to fixing and maintaining prices on the wholesale market of supplying liquid caustic, dividing the market by volume of sales, categories of sellers, buyers, and under the geographic principle, and economically and technologically unjustified refusals to conclude contracts with buyers of liquid caustic.

“The Court of First Instance again examined the case on the market of liquid caustic and, in view of the comments of the Cassation Court, passed a new judgment. Overall this decision satisfied the Federal Antimonopoly Service since it confirms our decision on the existence of a cartel in the market of liquid caustic”, pointed out the Head of FAS Anti-Cartel Department, Andrey Tenischev.

“This is a precedent case on a hard-core cartel that operated on the market nearly seven years”, added Deputy Head of FAS Alexander Kinyov. “It is very important for establishing modern anti-cartel practice”.

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Liquid caustic (sodium hydroxide) is used in pulp & paper sector, production of detergents, chemical industry, oil refining, and metallurgy.