OREANDA-NEWS. September 15, 2009. The 9th Arbitration Appeal Court upheld the ruling of the Court of the Fist Instance that confirmed validity of the decision and determination issued by the Federal Antimonopoly Service (FAS Russia) regarding "BaselCement-Pikalyovo" CSJC, reported the press-centre of FAS Russia.

Earlier the Federal Antimonopoly Service (FAS Russia) found that "BaselCement-Pikalyovo" CSJC violated Part 1 Article 10 of the Federal Law "On Protection of Competition" (that prohibits abusing dominant position) and issued a determination to "BaselCement-Pikalyovo" CSJC to stop the actions the violated the antimonopoly legislation.

"BaselCement-Pikalyovo" CSJC violated the law by terminating in 2008 supplies of belite slurry (crude materials for cement production) to "Pikalyovsky Cement" CJSC and cutting down supplies of carbonate mud (crude materials for cement production of soda and potash) to "Metakhim" CJSC in spite of valid supply contracts.

As a result, cement production at "Pikalyovsky Cement" CJSC stopped and production of soda and potash at "Metakhim" CJSC was cut down considerably. It created social tension in the region as three town companies were put to a halt. The situation improved only when Vladimir Putin, the Chairman of the Russian Government, visited Pikalyovo.

Currently the authorities formed the Headquarters for recovery of the Pikalyovo Production Complex; representatives of FAS Russia are actively involved in its work.

According to the FAS Russia's determination, "BaselCement-Pikalyovo" CSJC had to sell the property, owned by the company, through competitive biding , by 1st May 2009 or resume supplies of carbonate mud to "Metakhim" CJSC and enter in slurry supply contract with "EUROCEMENT Group" CJSC by 15th May 2009.

However, "BaselCement-Pikalyovo" CSJC disagreed with the decision and determination of the antimonopoly authority and appealed them. The Courts confirmed the rightness of the Antimonopoly service.

"The developments in Pikalyovo as well as the rulings by the Courts of two instances have confirmed the rightness of the FAS Russia's position, which was formed as far back as the beginning of 2009", said Andrey Tsyganov, Deputy Head of FAS Russia. "This Complex can work efficiently only as an integral unit".