OREANDA-NEWS. September 22, 2009. The Belgorod Office of the Federal Antimonopoly Service (the Belgorod OFAS Russia) found that "Russian Railways" OJSC ("RZhD" OJSC) violated Part 1 Article 10 of the Federal Law "On Protection of Competition" (abusing dominant position), reported the press-centre of FAS Russia.

The antimonopoly case against "Russian Railways" OJSC бwas initiated upon a petition of the Federal Budgetary Institution No.7 Prison Settlement. According to the Petitioner, "Russian Railways" OJSC proposed that the Petitioner should enter into a cargo transportation contract with 100% advance payment. "Russian Railways" OJSC did not satisfy the request of the prison settlement that the contract should be based on an advance payment not exceeding 30% of the contract sum.

Investigating the case, the Belgorod OFAS Russia found that as a budgetary institution, No.7 Prison Settlement can include a clause about advance payment, not exceeding 30% of the contract sum, into payment agreements for cargo transportation. "Russian Railways" OJSC abused its dominant position when it refused to conclude the contract under the conditions which would satisfy the interests of a budgetary institution.

The Belgorod OFAS Russia issued a determination to "Russian Railways" OJSC on inadmissibility of the actions that can result in violating the antimonopoly legislation.

Currently, OFAS Russia is initiating administrative proceedings under Article 14.31 of the Code of the Russian Federation on Administrative Violations. Under Article 14.31 the "turnover fine will be 1% - 15% for the previous year.