OREANDA-NEWS. October 07, 2008. The 9th Arbitration Appeal Court dismissed the appeal of "Gazprom" OJSC against the ruling of the Moscow Arbitration Court, which confirmed validity of the determination issued by the Federal Antimonopoly Service (OFAS Russia) on 22nd February 2008 to "Gazprom" OJSC upon processing its petition on buying 50% + 1 voting shares of "TGK-1" OJSC, reported the press-centre of FAS Russia.

In September 2007 "Gazprom" OJSC petitioned to FAS Russia on approving the transaction for buying 50% + 1 voting shares of "TGK-1" OJSC. The share of "TGK-1" in generating electric power within the boundaries of the free power transfer zone, defined by the area of the North-West Integrated Power System (excluding the Kaliningrad and Kolsky energy systems), exceeds 20%.

Implementing the transaction will restrict competition on the wholesale energy market within the geographic boundaries of the above zone, because "Gazprom" OJSC will gain the dominant position. Taking into consideration the dominant position of "Gazprom" OJSC on the markets of transportation, supplies and distribution of natural gas in the above zone, the transaction will result in vertical integration of the subject of natural monopoly with the economic entity - a consumer of its services.

Having considered the above circumstances, FAS Russia granted the "Gazprom" petition on approving the transaction. The approval is valid only combined with the determination, according to which FAS Russia exercises state control over compliance with the antimonopoly legislation by the parties, and prevents antimonopoly activities.