OREANDA-NEWS. July 04, 2014. The Federal Arbitration Court of the North-Caucasus District confirmed legitimacy of FAS Office in the Republic of Dagestan (Dagestan OFAS Russia) recognizing that “Gazprom Mezhregiongaz Pyatigorsk” Ltd. violated the antimonopoly law.

Dagestan OFAS Russia received a petition from “ZhKKh Service” Ltd. (Kizilyurt) to undertake measures with regard to “Gazprom Mezhregiongaz Pyatigorsk” Ltd. that had unlawfully terminated gas supplies.

Upon the fact of terminating gas supply to “ZhKKh Service” Ltd. without economic or technological justification, the antimonopoly body initiated a case against the gas company upon signs of violating Part 1 Article 10 of the Federal Law “On Protection of Competition” and as the outcome of the investigation the violation was recognized.

The gas company disagreed with the decision of the antimonopoly body and filed a claim to Dagestan Arbitration Court on abolishing OFAS decision and determination that was allowed.

The Antimonopoly Service appealed the judgment at the 16th Arbitration Appeal Court that on 11th March 2014 confirmed legitimacy of OFAS decision and determination, abolishing the judgment of a Lower Instance Court.

A line in this dispute was drawn by the Federal Arbitration Court of the North-Caucasus District, to which the gas company challenged the ruling of the Appeal Court, confirming legitimacy of the actions undertaken by the antimonopoly authority.

The Head of Dagestan OFAS Russia Kurban Kubasaev commented that “Gazprom Mezhregiongaz Pyatigorsk” Ltd. violated the procedures on terminating or restricting supplies of electric power, heating power and gas to the organizations – consumers in payments for fuel-and-energy resources supplied to them (used by them), as approved by a Decree of the Government of the Russian Federation of 05.01.1998. We are pleased that the Courts supported the position of the Antimonopoly Service”.