Khimprom did not abuse its market dominance

FAS terminated proceedings against “Khimprom” PJSC (opened upon signs of fixing monopolistically high price on the markets of softener-2) due to absence of the antimonopoly violation.

On 12 September 2016, the Commission of the Federal Antimonopoly Service (FAS Russia) investigated the case against “Khimprom” PJSC upon signs of violating the Federal Law “On Protection of Competition”. The FAS Commission concluded that the price fixed by “Khimprom” PJSC in 2016 for the raw materials for elements of individual protection of humans, the so-called softener-2, supplied for the defence industry, did not exceed the sum of the costs of profit required to produce and sell the product.

At the same time FAS draws attention that the grounds for opening the case was a statement from “Kamenskvolokno” JSC on breaching the antimonopoly law by “Khimprom” PJSC that in 2016 had set prices for softener-2 considerably higher than in 2015. The actual delivery price for softener-2 in 2016 for “Kamenskvolokno” JSC, however, was set lower that the target price and the party representatives informed FAS about it in the course of the case investigation.

Therefore, FAS would like to emphasize the importance of timely informing the antimonopoly authority about the actual arrangements reached by the parties on the essential conditions of supply contracts, exercising under the frame of public defence procurement.