OREANDA-NEWS. March 11, 2011. The Federal Antimonopoly Service (FAS Russia) found that “Chernomortransneft” OJSC and members of the same group of persons – “Transneft - Terminal” Ltd. and “Transneft -Service” CJSC - violated Part 1 Article 10 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

The companies violated the pricing procedures established by normative legal acts for the market of the services for oil transshipment, loading and unloading in the Krasnodar and Stavropol regions. Also “Chernomortransneft” OJSC was evading direct contracts for providing oil transshipment and loading services.

Earlier FAS Russia initiated a case against “Chernomortransneft” OJSC, “Transneft - Terminal” Ltd. and “Transneft -Service” CJSC upon the findings of a scheduled inspection of “Chernomortransneft” OJSC carried out by the Federal Tariff Service in order to verify whether expenses accounted for tariff regulation and actual funds spent in 2007 – 2009 were economically justified, and whether the tariffs were calculated and applied correctly.

The investigation proved that the group of persons comprising “Chernomortransneft” OJSC, “Transneft - Terminal” Ltd. and “Transneft -Service” CJSC had violated the established pricing procedures and had unreasonably evaded providing regulated services for oil transshipment and loading from Q2 2008 to Q12011.

The core of the violation was that oil companies could not enter into contracts for oil transshipment and loading / unloading with “Chernomortransneft” OJSC, which is a holder of natural monopoly. As such, in 2008 – the beginning if 2008 “Chernomortransneft” OJSC concluded a contract with “Transneft - Terminal” Ltd. for all available capacity, and in 2009 to present – with “Transneft -Service” CJSC. “Transneft - Terminal” Ltd. and “Transneft -Service” CJSC were reselling oil at considerably higher prices to the end-customers – oil companies and oil traders.

Having studied the case materials, the FAS Russia Commission found that the companies violated Part 1 Article 10 of the Federal Law “On Protection of Competition”and issued a determination of the basis of this decision.

Reference:

Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits economic entity with dominant market position to undertake actions that lead or can lead to preventing, eliminating or restricting competition and infringing the interests of other persons, particularly, violating the established pricing procedures ad evading contracts.