OREANDA-NEWS. September 02, 2014. “Urals Chemical Reagents Plant” fixed a monopolistically high price for chemical reconnaissance devices

A joint Commission of the Federal Antimonopoly Service (FAS Russia) and the Federal Service on Defence Procurement (Rosoboronzakaz) found that “Urals Chemical Reagents Plant” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition” (abusing dominance). Breaching the pricing procedure established by normative legal acts resulted in fixing monopolistically high price for field chemical reconnaissance devices.

Earlier FAS received information that in 2013 “Urals Chemical Reagents Plant” OJSC considerably increased prices for field chemical reconnaissance devices. Effectively, the device costs increased by more than threefold.

The Commission of FAS Russia and Rosoboronzakaz established that the company breached the existing procedure for determining the costs and profit of defence production under state defence procurement. Based on the results of the Commission work, “Urals Chemical Reagents Plant” OJSC received a determination to eliminate the violation, the company and the responsible executive will be held administratively liable.

“Investigating the pricing disputed between defence companies we come across practice of unreasonably increasing overalls and disproportionally classifying them as output costs, which significantly increase the final costs of defence products. We think that such facts constitute a strong example of abusing dominance, and in some cases – monopolistic position of an economic entity on the market”, commented the Head of FAS Department for Control over Industry and Defence Complex, Mikhail Ovchinnikov.