OREANDA-NEWS. July 09, 2014. The joint Commission of the Federal Antimonopoly Service (FAS Russia) and the Federal Defence Procurement Service (Rosoboronzakaz) found that “Kamenskvolokno” OJSC (Kaminsk-Shakhtinsky) abused their dominance.

The company fixed monopolistically high prices for the products used for manufacturing products under government defence procurement (Part 1 Article 10 of the Federal Law “On Protection of Competition”).

The case was initiated upon the findings of an inspection carried out jointly with Rosoboronzakaz as part of enforcing Article 14 of the Federal Law “On State Defence Procurement” (antimonopoly requirements in state defence procurement), as well as executing the instructions of the Government of the Russian Federation due to the critical situation with state defence procurement in 2013.

“Kamenskvolokno” OJSC has then dominant position on the market in question of the Russian Federation. The products manufactured by the company are one of the most important components for manufacturing products under state defence procurement.

“The company conducted a detailed economic-and-legal analysis of the pricing procedures used by “Kamenskvolokno” OJSC, and revealed artificial costs transfer from competitive non-defence products to monopolistic types of special products. As a result the costs of non-defence products remained practically unchanged during several years, while every year prices for special products increased considerably”, pointed out Stats-Secretary, Deputy Head of FAS Russia, Andrey Tsarikovsky.