OREANDA-NEWS. On September 05, 2008 the Federal Antimonopoly Service (FAS Russia) recognized that "Raspadsky Ugol" Ltd. violated Part 1 Clause 1 Article 10 of the Federal Law "On Protection of Competition" in terms of abusing the dominant position on the market of coking coal, reported the press-centre of FAS Russia. 

"Raspadsky Ugol" Ltd. violated the antimonopoly legislation by fixing and maintaining monopolistically high prices for concentrates of coking coals (grades GZh and GzhO) on domestic market.

The case against "Raspadsky Ugol" Ltd. was initiated upon inspections and price monitoring carried out by FAS Russia.

Analysis of price behavior on the domestic market of coking coals, initiated by FAS Russia due to growing prices on the market, shows that prices have been increasing considerably since the last quarter 2007.

Under Article 14.31 of the Code of the Russian Federation on Administrative Violations, abusing dominant position is punishable by imposing administrative fines upon legal persons - 1-15% of the net sales, gained by the violator on the market where the violation occurred, in the year preceding the year when the violation was discovered, but no more than 2% of consolidated revenues from selling all goods.

Calculating the fine, FAS Russia will take into account cooperation and assistance of "Raspadsky Ugol" Ltd. in antimonopoly investigation and measures undertaken by the company to eliminate the violations and their consequences (in particular, "Raspadsky Ugol" Ltd. voluntarily decreased prices for coking coal to 5 300 Rubles per ton). FAS Russia will also consider stability of supplies to customers as well as long-term contracts (up to five years) for supplying coking coal, signed by "Raspadsky Ugol" Ltd.