OREANDA-NEWS. May 07, 2014. The Federal Antimonopoly Service issued three warnings to “Gazprom Sera” because the company’s actions on the market of liquid sulfur had elements of violating No.135-FZ Federal Law “On Protection of Competition”. As commented the Head of FAS Department for Control over Chemical Industry and Agro-Industrial Complex, Anna Mirochinenko, “Gazprom Sera” Ltd. unreasonably avoided contracts for supplying liquid sulfur with producers of mineral fertilizers - “EvroChim-BMU” Ltd., “Balakovskie Mineralnie Udobrenia” CJSC and “FosAgro-Cherepovets” OJSC.

To execute the warning, “Gazprom Sera” Ltd. must within 30 days after receiving the warning consider offers of economic entities in accordance with the procedures under Article 445 of the Civil Code. FAS already sent the warning to “Gazprom Sera” Ltd.

The warning also specifies that if the parties reach arrangements on formula pricing for liquid sulfur, which is the subject matter of the contract, sulfur consumers must be provided a possibility to evaluate whether its calculation is justified and correct.

The warning also has a formula for calculating liquid sulfur price. The formula will be used by the antimonopoly authority to evaluate whether it is economically justified and fair under Part 1 Article 10 of Federal Law “On Protection of Competition” if the parties do not reach a mutual consent on sulfur prices. The formula provides for calculating liquid sulfur price on the basis of the lowest export price for granulated sulfur adjusted to FCA basis and corrected factoring in the actual costs for granulating and transportation costs for delivering liquid sulfur to consumers.

The proposed formula factors in the findings of pricing analysis for liquid sulfur supplied to the domestic market. The analysis was carried out as part of FAS Commission investigating an antimonopoly case against the group of persons, comprising “GAZPROM” OJSC, “Gazprom Dobycha Orenburg” Ltd., “Gazprom Dobycha Astrakhan” Ltd., and “Gazpromtrans” Ltd. The case was initiated upon elements of violating Part 1 Article 10 Federal Law “On Protection of Competition” (fixing and (or) maintaining monopolistically high price) on the market of liquid sulfur. The proceedings were terminated as the fact of violation was not corroborated.