Cassation Court: “TZK Sheremetievo” unlawfully refused to enter into a contract for refueling and storage of aviation fuel

The Arbitration Court of the Moscow District confirmed legitimacy of the decision made by the Federal Antimonopoly Service (FAS Russia) with regard to “TZK Sheremetievo” CJSC

In September 2015, FAS opened a case against the company upon signs of violating the antimonopoly law: unreasonably refusing to enter into a contract (Clause 5 Part 1 Article 10 of the Federal Law “On Protection of Competition”).

The FAS Commission established that for several months “TZK Sheremetievo” CJSC avoided a contract with “Santel” Ltd. for refueling and storing aviation fuel.  As a result of such actions, “Santel” Ltd. could not execute its obligations to “Aeroflot” PJSC to supply fuel in 2015.

Earlier, FAS issued a warning to the company to stop such actions and eliminate the signs of the violation. The warning, however, was not executed, which lead to initiating the proceedings.

“TZK Sheremetievo” CJSC is a holder of natural monopoly and renders services on aviation fuel storage and aircraft refueling with aviation fuel at Sheremetievo International Airport.

Under Part 1 Article 8 of No. 147-FZ Federal Law “On Natural Monopolies” of 17.08.1995, holders of natural monopolies cannot refuse to enter in to contracts with particular consumers for producing (selling) goods subject to regulation.

Having investigated the case, FAS found that “TZK Sheremetievo” CJSC violated the Federal Law “On Protection of Competition”.

The company filed a lawsuit challenging the FAS decision. The Court of First Instance, the Appeal Court and the Cassation Court dismissed the claim, recognizing the legitimacy of the conclusions reached by the antimonopoly body.