OREANDA-NEWS. October 20, 2014. The Office of the Federal Antimonopoly Service in St Petersburg (St Petersburg OFAS Russia) initiated a case upon elements of fixing monopolistically low prices by “Petmol” Milk Works, a branch of “UniMilk” OJSC (Article10 of No.135-FZ).

Earlier the Antimonopoly Service received a petition from a raw milk supplier – “Agro-Trade” Ltd. in unlawful actions of “UniMilk” OJSC that buys raw material from the company for producing dairy products.

According to the petitioner, in April – June 2014 “UniMilk” OJSC reduced milk purchasing prices from 20 to 17.5 RUB/l. At the same time, the producer increased retail prices for its products. For instance, 2.5% fat milk became on average 33% more expensive in St Petersburg.

“Agro-Trade” Ltd. finds such purchasing price disadvantageous since it is below the total expenses necessary to produce and sell milk. The company, however, cannot reject its main consumer and is forced to work at loss.

St Petersburg OFAS Russia reveals elements of violating the antimonopoly law by “UniMilk” OJSC in the part of fixing monopolistically low prices and opened a case.

The first meeting of the Commission on the case will be on 5th November 2014.

There are three largest processing entities in St Petersburg: “Piskarevsky” St Petersburg Milk Plant” Ltd., “Baltiisky Milk” Ltd. (a branch of “Vimm Bill Dann” OJSC) and “UniMilk” OJSC (a branch - “Petmol” Milk Works).

The two latter companies account for over 50 % of raw milk purchases from agricultural producers in the Leningrad region.

Article 10 the Federal Law “On Protection of Competition” (No.135-FZ) prohibits actions of an economic entity with dominant position that lead or can lead.