OREANDA-NEWS. January 14, 2011. The Federal Antimonopoly Service (FAS Russia) initiated a case against several large producers and sellers of chlorine in Russia. The case was initiated upon the signs of violating Clause 3 Part 1 Article 11 of the Federal Law “On Protection of Competition” (an agreement about dividing the market).

FAS Russia suspects that chlorine producers and sellers have formed a cartel to divide the market according to the sale volume and buyers’ composition.

The Antimonopoly Service thinks that participants of the cartel agreement determined the market share of each participant, assigned particular customers to each producer and its dealers and formed the bodies to coordinate the cartel and the controlling mechanisms.

According to FAS Russia, these actions considerably increased the price of chlorine. The main consumers of chlorine are water services companies that use chlorine to decontaminate water. Thus, the actions of cartel participants are causing considerable growth of tariffs for cold and hot water supply for the population.

“We believe that there are all necessary signs to classify the price collusion between Russian companies producing chlorine at the national level. Within the last year the price absolutely unreasonably increased practically threefold and this is pure and simple consequence of the collusion. It is important that unfair market players understand that it would be better for them to act within the law otherwise their losses from imposed fines can be many times higher than the profit they are trying to gain”, stated the Head of FAS Russia Igor Artemyev at the meeting with the Chairman of the Government of the Russian Federation Vladimir Putin.