OREANDA-NEWS. August 13, 2014. The 10th Arbitration Appeal Court (Moscow) confirmed legitimacy of a determination issued by Saratov OFAS and a decision made by FAS Russia on a case against “Rosgosstrakh” Ltd.

Earlier Saratov OFAS considered a case against “Rosgosstrakh” Ltd. on violations committed in the course of a tender organized by “MRSK Volga” OJSC for the right to conclude contracts for financial services (No. 1 Lot - OSAGO). The bid opening procedure was scheduled on 17th May 2010, and bids evaluation and comparison - on 19th May 2010. Upon the results of the open tender on No.1 Lot, the OSAGO contract was concluded with the winner – “Rosgosstrakh” Ltd. on 01.06.2010. At the same time, on 17th May 2010, immediately after the bid opening, the first OSAGO policies were issued without the premium payment under the contracts. “Rosgosstrakh” Ltd. could issue the policies of “MRSK Volga” OJSC only upon a preliminary agreement between the companies.

“Rosgosstrakh” Ltd. gained an unreasonable advantage over other bidders at an open tender, since it practically concluded the contract with “MRSK Volga” OJSC before closing the tender (the overall insurance premium was nearly 14 million RUB), and started executing the contract.

Saratov OFAS found that “Rosgosstrakh” Ltd. violated Part 1 Article 11 of the Federal Law “On Protection of Competition”. The decision was supported by Courts.

Based on its decision about the antimonopoly violation and guided by Part 1 Article 14.32 of the Code of the Russian Federation on Administrative Violations, Saratov OFAS initiated an administrative case against “Rosgosstrakh” Ltd. and issued a determination to fine the company 24,113,870 RUB.

“Rosgosstrakh” Ltd. disagreed with the determination and filed a complaint to FAS Russia. FAS made a decision that changed the determination of Saratov OFAS in the part of the administrative fine, reducing it to 4,950,000 RUB (in line with Article 1.7 of the Code of the Russian Federation on Administrative Violations: applying the norm on improving the person’s position).

“Rosgosstrakh” Ltd. disagreed with the determination of Saratov OFAS and FAS decision and tried to challenge them, but Moscow Regional Arbitration Court and the 10th Arbitration Appeal Court dismissed the claim.