Fines upon bid-riggers involved in oil product transportation in Chukotka

FAS fined “Chukotsnab” State Unitary Enterprise of the Chukotka Autonomous District and “Polyarnaya Zvezda” Prospectors’ Cooperative” CJSC 2.4 million RUB for an anticompetitive agreement
In December 2015, FAS found that “Chukotsnab” State Unitary Enterprise of the Chukotka Autonomous District and “Polyarnaya Zvezda” Prospectors’ Cooperative” CJSC violated Clause 3 Part 4 Article 11 of the Federal Law “On Protection of Competition”. The companies entered in an anticompetitive agreement to ensure “Polyarnaya Zvezda” Prospectors’ Cooperative” CJSC becoming the winner of procurement of services for oil products transportation by road.
To implement the anticompetitive agreement, “Chukotsnab” and “Polyarnaya Zvezda” fixed special restrictions for road haulers, particularly, increased the bid and contract security. The requirements were specified in the procurement documentation, as a consequence of which “Polyarnaya Zvezda” became the winner in procurement by the unitary enterprise for the total sum exceeding 800 million RUB.
“Holding the violators administratively liable is legitimate result of the efforts of the antimonopoly body aimed at enhancing procurement transparency in such a remote area of Russia. FAS will continue the work on exposing anticompetitive agreements in oil products procurement”, explained Head of FAS Anti-Cartel Department, Andrey Tenishev.