OREANDA-NEWS. November 13, 2014. The “Market Council” Non-Profit Partnership executed a FAS determination by making changes to the Regulations on the procedure for granting financial guarantees on the wholesale market.

On 5th June 2014, the Federal Antimonopoly Service (FAS Russia) established the fact of violating the antimonopoly law by the “Market Council” Non-Profit Partnership. The latter set additional requirements to the organizations that can grant financial guarantees to the wholesale market of electric power (capacity) in the Regulations on the procedures for granting financial guarantees on the wholesale market. Such requirements were a mandatory condition for trading on the wholesale market.

In particular, such organizations should be banks with over 4 billion RUB own capital and have an international ranking of long-term creditworthiness.

This version of the Regulations restricted the number of economic entities that might render services on providing financial guarantees on the wholesale market, which infringed the interests of wholesale market participants.

FAS issued a determination to the “Market Council” Non-Profit Partnership to exclude all non-statutory requirements from the Regulations on the procedures for granting financial guarantees on the wholesale market.

The “Market Council” Non-Profit Partnership and “ATS” OJSC disagreed with the FAS decision and determination and filed a lawsuit to Moscow Arbitration Court to invalidate them. The Court, however, dismissed the claim supporting FAS.

On 30th October 2014, the Advisory Council of the “Market Council” Non-Profit Partnership approved changes to the Regulations on the procedures for granting financial guarantees on the wholesale market that exclude the above requirements in execution of FAS determination.

“Restricting the number of persons that have the right to grant financial guarantees to participants of the wholesale market of electric power and capacity generates the risk of depriving the companies of their status of wholesale market participant, that accredited banks refuse to grant such guarantees for some reasons. Reducing the number of market participants is a sign of restricted competition under the Law “On Protection of Competition”. The decision of the Advisory Council of the “Market Council” Non-Profit Partnership has normalized the situation with granting financial guarantees. Now even a small credit organization can grant such guarantees upon accreditation with the “Market Council” Non-Profit Partnership”, pointed out the Head of FAS Department for Control over Electric Power Industry, Vitaly Korolyov.