Primorie OFAS won judicial proceedings against “RN-Vostoknefteproduct” Ltd. at all Courts of Law

16-02-2017 | 09:53

Arbitration Court, the 5th Appeal Court, the Arbitration Court of the Far East District and the Supreme Court of the Russian Federation upheld OFAS decision that “RN-Vostoknefteproduct” Ltd.violated the Federal Law “On Protection of Competition”.

Primorie OFASinvestigated a case opened against“RN-Vostoknefteproduct” Ltd. upon signs of unreasonably increased petrol prices.

The case materials show that from 01.07.2014 to 31.10.2014 “RN-Vostoknefteproduct” Ltd.reduced supplies of oil products to independent economic entities. At the same time retail sales of oil products by the Company increased significantly in the period in question. Thus, unilateral actions by the Company on increasing sales of Аi-92 and Аi-95 petrol resulted in reduced consumption and further sales of then above petrol grades by competitors selling motor fuel.

In the analyzed period “RN-Vostoknefteproduct” Ltd.systematically increased prices for oil products; while the growth rate of small wholesale prices were higher than the growth rate of retail prices, which led to reduced profit from retail sale of motor fuel for the economic entities acquiring fuel from the company and at the same time competing with “RN-Vostoknefteproduct” Ltd.

Having investigated the case, the Commission of Primorie OFASfound that such actions by the Company violated the antimonopoly law and issued an injunction to “RN-Vostoknefteproduct” Ltd. to stop abusingmarket dominance and perform actions designed to support competition.

The Arbitration Court, the 5th Appeal Court, the Arbitration Court of the Far East District and the Supreme Court of the Russian Federation upheld the decision of the antimonopoly body.

Based on the fact of violations, “RN-Vostoknefteproduct” Ltd.was held administratively liable:the Company was fined 38 million RUB. The 5th Appeal Court decreased the fine to 19,426,575 RUB. Primorie OFASdisagreed with the ruling and is currently appealing it at the Court of a higher instance.

Meanwhile, according to OFAS press-release, “RN-Vostoknefteproduct” Ltd.paid the fine ruled by the 5th Appeal Court.