OREANDA-NEWS. April 21, 2014. The Commission of the Federal Antimonopoly Service (FAS Russia) found that “Mine Rescue Brigade” Federal State Unitary Enterprise abused its market dominance (a violation of Part 1 Article 10 of the Federal Law “On Protection of Competition”).

“Mine Rescue Brigade” Federal State Unitary Enterprise provides mine-rescue services to companies operating hazardous production facilities.

The case against “Mine Rescue Brigade” was initiated upon petitions of “Gai Mining-and-Processing Works” OJSC, “Uchalinsk Mining-and-Processing Works” OJSC, “Buribaevsk Mining-and-Processing Works” CJSC, “Novotroitsk Cement Works” OJSC, and “Ufaleinickel” OJSC.

“Mine Rescue Brigade” has the dominant position in the constituent territories of the Russian Federation, where “Gai Mining-and-Processing Works” OJSC, “Uchalinsk Mining-and-Processing Works” OJSC and “Buribaevsk Mining-and-Processing Works” CJSC are located, on the markets of mine-rescue services for companies operating hazardous production facilities for open-pit mining.

In the course of the antimonopoly investigation, the FAS Commission established that in 2013 “Mine Rescue Brigade” considerably raised the costs of mine-rescue equipment for “Gai Mining-and-Processing Works” OJSC. The price increase exceeded the growth of expenses required to provide mine-rescue services at such facilities.

The FAS Commission found that in 2013 “Mine Rescue Brigade” fixed monopolistically high prices for mine-rescue services for “Gai Mining-and-Processing Works” OJSC. Experts of the antimonopoly authority, however, did not expose facts on fixing monopolistically high prices for “Uchalinsk Mining-and-Processing Works” OJSC and “Buribaevsk Mining-and-Processing Works” CJSC. Thus, the proceedings on the circumstances described in the companies’ statements were terminated.

“Novotroitsk Cement Works” OJSC and “Ufaleinickel” OJSC operate hazardous production facilities for open-pit mining. “Mine Rescue Brigade” does not have the dominant position on the market of mine-rescue services for organizations operating hazardous production facilities for open-pit mining in the constituent territories of the Russian Federation, where the companies are located. Therefore, the proceedings opened upon the facts described by “Novotroitsk Cement Works” OJSC and “Ufaleinickel” OJSC were terminated.

The FAS Commission issued a determination to “Mine Rescue Brigade” to exercise actions aimed at supporting competition.

“FAS will monitor the situation with pricing on the markets of mine-rescue equipment. If elements of violating the antimonopoly law on these markets are identified, interested persons can approach the antimonopoly authority”, pointed out the Head of FAS Department for Control over Industry and Defence Complex, Maxim Ovchinnikov.