OREANDA-NEWS.  May 13, 2014. The 7th Arbitration Appeal Court upheld the determination of the Office of the Federal Antimonopoly Service in the Kemerovo Region (Kemerovo OFAS Russia) to fine “Russian Railways” OJSC over 5 million RUB for violating the antimonopoly law.

On 18th April 2013, the Antimonopoly Service found that “Russian Railways” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”.

The company unlawfully forced “TransService” Ltd. to abolish consignment of “steel grinding balls”, packed in soft containers of single use, in universal containers upon accepting applications for consignation.

“Russian Railways” OJSC unlawfully did not allow “Transgarant” Ltd. to ship “steel grinding balls”, packed in soft containers of single use, and requested to draft Local Technical Conditions.

The company also created discriminatory conditions on the market. “Russian Railways” OJSC requested that consignors - “TransService” Ltd. and “Transgarant” Ltd. to draft Local Technical Conditions for transporting “steel grinding balls”. Such requirements were not set for other economic entities.

To substantiate the unlawful refusal of “Russian Railways” OJSC to allow consignments, Kemerovo OFAS Russia approached the federal body directly responsible for regulatory control over railway transport – the Ministry of Transport of the Russian Federation.

The Ministry of Transport of the Russian Federation did not require drafting Local Technical Conditions.

Kemerovo OFAS Russia issued a determination to “Russian Railways” OJSC to stop violating the antimonopoly law and held the company administratively liable.

The freight forwarders executed the determination; however, “Russian Railways” OJSC challenged the decision and determination of the Antimonopoly Service at Court. All three Courts supported the position of Kemerovo OFAS Russia.

“Such decisions with regard to “Russian Railways” OJSC are important for the practice of all regional Offices of the Antimonopoly Service. In our opinion, the judicial case is of a considerable practical importance for antimonopoly regulation because violations committed by “Russian Railways” OJSC often are directly associated with freightage that the company can restrict deliberately”, said the Head of Kemerovo OFAS Russia, Elena Kloster.