OREANDA-NEWS. On December 04, 2008 the Federal Antimonopoly Service (FAS Russia) imposed administrative charges on "Sibirsky Cement" Holding Company" OJSC and "ZapSibCement" Ltd. and fined the companies 50 298 859.95 Rubles and 1 889 137.023 Rubles accordingly for concluding an agreement, restricting competition on the cement market, reported the press-centre of FAS Russia.

Earlier FAS Russia recognized that the Irkutsk Regional Authority, the Irkutsk Regional Department of Urban Planning and Road Facilities, "Sibirsky Cement" Holding Company" OJSC, the East-Siberian Railway - a branch of "RZhD" OJSC and "ZapSibCement" Ltd. violated Clauses 3 and 4 Article 16 of the Federal Law "On Protection of Competition".

The antimonopoly legislation was violated because in 2007 the Irkutsk Regional Authority and "Sibirsky Cement" Holding Company" OJSC, the largest cement producer in the Siberian Federal District, concluded an agreement, according to which "Sibirsky Cement" Holding Company" OJSC was obligated to sell outside the Irkutsk region only the cement that was not required by the construction sector in the region.

In September 2007 officials of the East-Siberian Railway - a branch of "RZhD" OJSC made several orders that prohibited shipping cement outside the Irkutsk region, and in September 2007 the plan of shipping cement to the consumers, agreed by the Irkutsk Regional Department of Urban Planning and Road Facilities and "ZapSibCement" Ltd. (a member of the group of persons of "Sibirsky Cement" Holding Company" OJSC), came into force. According to this plan, the cement, produced at the Angarsky Cement Works, was no more transported outside the Irkutsk region.

Therefore, in 2007 in the Irkutsk region there was a competition-restricted agreement between the Irkutsk Regional Authority and "Sibirsky Cement" Holding Company" OJSC, as well as concerted actions with the East-Siberian Railway - a branch of "RZhD" OJSC, the Irkutsk Regional Department of Urban Planning and Road Facilities and "ZapSibCement" Ltd., also aimed at dividing the goods market of cement consumers and restricting entry to the goods market for the cement consumers that did not operate in the Irkutsk region.

Under Article 14.32 of the Code of the Russian Federation on Administrative Violations, if an economic entity concludes a competition-restricting agreement, which is forbidden by the antimonopoly legislation of the Russian Federation, or is engaged on competition-restricting concerted actions, which are forbidden by the antimonopoly legislation of the Russian Federation, it is punishable by administrative fines upon legal entities - from one hundredth to fifteen hundredth of the net sales by the violator of the goods (works, services) on the market where the violation occurred.

The fines imposed for the administrative violations under Article 14.32 of the Code of the Russian Federation on Administrative Violations:
- "Sibirsky Cement" Holding Company" OJSC - 50 298 860 Rubles;
- "ZapSibCement" Ltd. - 1 889 137 Rubles.