OREANDA-NEWS. December 22, 2008. The Federal Antimonopoly Service (FAS Russia) found that "Uralmash - burovoe oborudovanie" CJSC and "Uralmashzavod" OJSC breached Part 1 Clause 7 Article 11 of the Federal Law "On Protection of Competition", reported the press-centre of FAS Russia.

The case was initiated upon a petition of "Uralmash - burovoe oborudovanie" CJSC on singing an agreement with "Uralmashzavod" OJSC in 2005, which could have violated the antimonopoly legislation.

"Uralmash - burovoe oborudovanie" CJSC and "Uralmashzavod" OJSC directly compete on the market of drilling equipment. At the same time, under the agreement one of the parties ("Uralmashzavod" OJSC) undertook an obligation to not supply sets of drilling equipment to the market of the Russian Federation and, therefore, to not participate in the market competition.

FAS Russia established that in fact "Uralmash - burovoe oborudovanie" CJSC and "Uralmashzavod" OJSC did not exercise any actions towards executing the cartel agreement.

Taking into account that actions of the parties had not resulted in economically or technologically reduction of termination of goods production or other adverse consequences, FAS Russia did not issue a determination on the case.

FAS Russia will not apply penal sanctions to the companies.

The agreement was concluded by previous management of "Uralmashzavod" OJSC and "Uralmash - burovoe oborudovanie" CJSC. The policy of the current management of the companies is to comply with the legislation on competition.

Andrey Tsyganov, Deputy Head of FAS Russia and the Chairman of the FAS Russia's Commission investigating the case, said: "Anticompetitive agreement between Uralmashzavod" OJSC and "Uralmash - burovoe oborudovanie" CJSC is an interesting case because it is one of the first experiences of "giving oneself up", allowed by the Russian antimonopoly legislation and relieving the entity, which reported to FAS Russia on participating in a cartel and assisted investigation of the violation, from administrative liability.

In addition, I would like to emphasize another factor. Unfortunately, Russian consumers, who are the largest oil and gas companies, do not readily place orders for drilling equipment to domestic companies. Reorientation to domestic market would undoubtedly help overcome crisis developments in the Russian heavy industry".