OREANDA-NEWS. July 13, 2009. The Moscow Arbitration Court dismissed the claim of "BazelCementPikalyovo" CJSC on invalidating the decision and determination of the Federal Antimonopoly Service (FAS Russia) of 23rd January 2009, reported the press-centre of FAS Russia.

In January 2009, FAS Russia found that the group of persons of "BazelCementPikalyovo" CJSC violated Part 1 Article 10 of the Federal Law "On Protection of Competition".

"BazelCementPikalyovo" CJSC violated the antimonopoly legislation by terminating supplies of belite slurry (the raw material for producing cement) to "Pikalyovsky Cement" CJSC in 2008 and reducing supplies of carbonate mud (the raw material for producing soda and potash) to "Metakhim" CJSC in spite of valid supply contracts.

It led to suspension of cement production at "Pikalyovsky Cement" CJSC and considerable reduction of production of soda and potash at "Metakhim" CJSC. As a result, three town companies were shut down and social tension has risen in the region. The situation was only normalised when Prime-minister Putin visited Pikalyovo.

Currently the authorities have formed the Headquarters for reviving the Pikalyovo industrial complex; FAS Russia's officers take active part in the work of the Headquarters.

According to the FAS Russia's determination, by 1st May 2009 "BazelCementPikalyovo" CJSC should have organised a tender for selling the company's property portfolio or by 15th May 2009 resume supplying carbonate mud to "Metakhim" CJSC and enter into a contract for supplying slurry to "EUROCEMENT Group" CJSC.

"BazelCementPikalyovo" CJSC, however, disagreed with the decision and determination of the antimonopoly authority and filed a lawsuit.

The Moscow Arbitration Court dismissed the claim of "BazelCementPikalyovo" CJSC and confirmed validity of the decision and determination issued by FAS Russia.