OREANDA-NEWS.  September 29, 2014. The Judicial Panel of the Supreme Court of the Russian Federation on Economic Disputes confirmed legitimacy of the decision and determination issued by the Federal Antimonopoly Service (FAS Russia) with regard to “Russian Railways” OJSC upon the facts of numerous refusals to execute applications of consignors for railway freight in the carrier’s cars, which is paid in accordance with the tariffs set by the Federal Tariff Service.

The case was initiated upon elements of violating the antimonopoly law by a group of persons comprising: “Russian Railways” OJSC (a holder of natural monopoly – railway freight carrier, owner of railway infrastructure), “First Freight Company” OJSC and “Second Freight Company” OJSC (rolling stock owners). Upon the results of the case investigation, FAS found that “Russian Railways” OJSC violated Clauses 3, 4 and 5 Part 1 Article 10 of the Federal Law “On Protection of Competition”.

FAS opened the proceedings upon numerous petitions from consignors and the executive bodies of the constituent territories of the Russian Federation that availability of railway freight services increased along with an uncontrolled growth of the transportation costs. They also complained that “Russian Railways” OJSC unreasonably avoided accepting, agreeing upon and executing applications for freightage in inventory rolling stock, the carrier possesses under the right of ownership and any other legitimate right.

Under the antimonopoly law, in such situations carrier’s refusals to agree upon and execute consignors’ applications constitute several violations specified in Article 10 of the Federal Law “On Protection of Competition”.

As a result of the anticompetitive actions of “Russian Railways” OJSC, in 2010-2011 availability of services reduced from 90% to 60 % for large consignors and from 75-80% to 30% for small and medium business. The costs of the car element increased up to twofold and transportation costs – up to 30%.

“Earlier Arbitration Courts, and now the Supreme Court of the Russian Federation confirmed legitimacy and reasonableness of FAS decision. Today it is necessary to continue moving towards development of a civilized market of railway transportation. First consultations on more active involvement of “Russian Railways” OJSC in developing commercial market infrastructure already took place. In particular, this entails company participation in the work of a platform for providing the services for placing cars on private tracks. Another important factor are preliminary arrangements on developing flexible pricing for railway transportation services in view of the outcome of tenders for car-providing services organized, particularly, for the carrier’ needs”, commented Deputy Head of FAS, Anatoly Golomolzin.