OREANDA-NEWS. July 06, 2009. The Federal Antimonopoly Service (FAS Russia) initiated proceedings against "Bank VTB 24" CJSC and 27 insurance companies, reported the press-centre of FAS Russia. 

On 15th June 2009, FAS Russia also initiated two cases against Raiffeisenbank" CJSC and 23 insurance companies.

The cases were initiated upon the findings of the FAS Russia's Commissions in antimonopoly cases against "Raiffeisenbank" CJSC, "Bank VTB 24" CJSC and insurance companies.

In the case against "Bank VTB 24" CJSC and insurance companies, FAS Russia sees the elements of violation in concluding written agreements under the mortgage loan programmes of "Bank VTB 24" CJSC), which, apart from insurance of the subject matter of the mortgage, include a mandatory life and title insurance, which can qualify as an unfavourable contract condition, or a condition irrelevant to the subject matter of the mortgage loan contract.

According to FAS Russia, the agreements have elements of restricting competition on the market of banking services and are prohibited by Clause 5 Part 1 Article 11 of the Federal Law "On Protection of Competition".

FAS Russia sees similar elements of antimonopoly violations in actions undertaken by "Raiffeisenbank" CJSC and insurance companies, that concluded agreements as part of the bank programmes for mortgage lending.

According to FAS Russia, the agreements also violate Clause 4 Part 1 Article 11 of the Federal Law "On Protection of Competition", which forbids the agreements that lead ore can lead to economically or technologically unjustified refusal to enter into contracts with particular buyers and sellers.

In the second case against "Raiffeisenbank" CJSC and insurance companies, FAS Russia sees elements of violating Clause 1, 4 and 5 Part 1 Article 11 of the Federal Law.

The bank and insurance companies entered into agreements for vehicle crediting. The agreements have elements of restricting competition in the market of insurance services, which has resulted or may result on fixing the rates for insurance services, economically and technologically unjustified refusal to enter into contracts with particular buyers or sellers, as well as imposing unvafourable conditions of the insurance contract.

The cases will be heard on 3rd August 2009 by a joint Commission of FAS Russia and the Central Bank of Russia.