OREANDA-NEWS. On December 04, 2008 the Federal Antimonopoly Service (FAS Russia) recognized that a group of persons, consisting of "Metallorukav" CJSC and "Metallorukav" Trading House" Ltd., violated Part 1 Article 10 of the Federal Law "On Protection of Competition" (abusing dominant position), reported the press-centre of FAS Russia.

The case was processed upon a petition of "PROTON - Permskie motory" OJSC about growing prices for the metal braid for pipelines, manufactured by "Metallorukav" CJSC and distributed by "Metallorukav" Trading House" Ltd., in January 2006 - May 2008.

"PROTON - Permskie motory" OJSC manufacturers rocket engines and components to them. In particular, "PROTON - Permskie motory" OJSC supplies rocket engines under governmental contracts, being an executor of the state defence order.

"Metallorukav" CJSC and "Metallorukav" Trading House" Ltd. have dominant position on the market of some grades of metal braid for pipelines in the Russian Federation.

The group of persons, consisting of "Metallorukav" CJSC and "Metallorukav" Trading House" Ltd., violated the law by abusing dominant position on the market of metal braids of particular grades, which resulted in restricting competition and infringing the interest of other entities, in particular:

- "Metallorukav" Trading House" Ltd. fixed and maintained monopolistically high prices for metal braid for pipelines

- "Metallorukav" CJSC refused to conclude a direct contract with "PROTON - Permskie motory" OJSC for supplying metal braid for pipelines without any economic or technological grounds and when possibility of supplying such goods was available.

Under Article 14.31 of the Code of the Russian Federation on Administrative Violations, abusing dominant position is punishable by administrative fines upon legal entities in the amount 1 - 15% of the net sales of the violators on the market, where the violations occurred, in the year preceding the year, when the violation was revealed but no more than 2% of the net sales of all goods.

FAS Russia will issue a decision and determination on the case within the statutory period.