OREANDA-NEWS. December 04, 2012. The Office of the Federal Antimonopoly Service in the Leningrad Region (Leningrad OFAS Russia) found that “Russian Railways” OJSC violated Clause 8 Part 1 Article 10 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

The case was opened upon a petition filed by the Construction Committee of the Leningrad Region regarding the railway monopolist.

In the course of the case investigation, OFAS established that in May – August 2012 “Russian Railways” OJSC had used different codes of the Classes of Transport Rates in legal relations with railway transport consignors and three companies producing course porous ceramic stone. Thus, the monopolist fixed different prices for transportation services.

Referring to the Letter of the Ministry of Transport, “Russian Railways” OJSC was forcing “Petrokeramika” CJSC to transport cargo under the code providing for a higher tariff. However, the railway company did not change the code for “Pobeda LSR” OJSC.

OFAS also established that within three months of 2012 “Ryabovsky Ceramic Products Works” Ltd. was transporting course porous ceramic stone under the code providing for a higher tariff.

Using different codes by “Russian Railways” OJSC for “Petrokeramika” CJSC, “Ryabovsky Ceramic Products Works” Ltd. and “Pobeda LSR” OJSC creates discriminatory conditions.

“Once again the FAS Commission exposed non-transparent interactions between “Russian Railways” OJSC and service consumers. The situation is aggravated by the fact that monopolist’s actions for providing transportation services affect other regional markets; in particular, the market of production of construction materials. Under non-transparent pricing policy of the natural monopoly, producers can stop business-processes and even leave the markets, which ultimately will impact the end value of the goods”, emphasized Deputy Head of Leningrad OFAS Russia, Gleb Konnov.

Clause 8 Part 1 Article 10 of the Federal Law “On Protection of Competition” prohibits actions of an economic entity with dominant position that resulted in restricting competition or infringing the interests of other persons, particularly, creating discriminatory conditions.