OREANDA-NEWS. June 26, 2012. The Office of the Federal Antimonopoly Service in the Republic of Sakha (Yakutia) (Yakutia OFAS Russia) found that the Government of the Republic of Sakha (Yakutia) and ALROSA OJSC violated Article 16 of the Federal Law On Protection of Competition, reported the press-centre of FAS Russia. 

The antimonopoly body established that the Government of the Republic of Sakha (Yakutia) and ALROSA OJSC concluded a contract about social-and-economic development of the Republic, under which the parties undertook obligations through the Diamond Council at the President of the Republic of Yakutia to conduct a unified policy for supporting and developing diamond-lapidary industry, stable supplying of rough diamonds to diamond-lapidary plants carrying out production operations in Yakutia and for developing the diamond industry complex of the Republic in general.

Information presented by economic entities and ALROSA OJSC showed that the company was the main supplier of rough diamonds for enterprises and also was buying rough diamonds according to recommendations issued by the Diamond Council.

In course of the investigation OFAS has established that in 2011 not all economic entities had access to rough diamonds, sold by ALROSA OJSC, or the volumes of acquired rough diamonds did not meet their needs. Thus, the Diamond Council worked on its objectives in a peculiar manner. Effectively, the contract condition for support of diamond-lapidary enterprises by sustainable supply of rough diamonds, violates Article 16 of the Federal Law On Protection of Competition and can result in restricting competition, commented Deputy Head of Yakutia OFAS Russia, Sergey Firansky.

Yakutia OFAS Russia issued a determination of the Government of the Republic of Sakha (Yakutia) and ALROSA OJSC to stop violating the antimonopoly law.