“Russian Railways” OJSC unlawfully shifted its responsibilities upon consignors

Moscow OFAS found that “Russian Railways” OJSC had violated the antimonopoly law in the part of abusing dominance (Part1 Article 10 of the Federal Law “On Protection of Competition”). The company prohibited to accept power gases for transportation without a contract with a specialized state enterprise for protecting such cargo, although “Russian Railways” was supposed to ensure their security on its own.

Moscow OFAS found that “Russian Railways” OJSC had prohibited to accept power gases – propane and butane - for shipping in the absence of a contract signed by a consignor with “Departmental Security Service on Railway Transport of the Russian Federation” Federal State Enterprise for escorting and protecting cargo.

At the same time, in accord with the current law, the carrier protects cargo en route and in railway stations using its own means or under a contract with the departmental security service of the federal executive body on railway transport or other organizations.

The exception are cargo, escorting and protection of which should be performed by their consignee or consignor under contract or the Statute of the Railway Transport of the Russian Federation.

The Rules for cargo transportation by railway transport with escort and security approved the list of cargo that must be protected by means of a consignor. At the same time power gases are not on the list, therefore, security of such cargo is the responsibility of the carrier - “Russian Railways” OJSC.

“Russian Railways” OJSC abused dominance on the market of railway transportation by failure of “Russian Railways” OJSC to fulfill responsibilities under the Law on Railway transport – to ensure security of special cargo (power gases – propane, butane), which infringed the interests of consignors.

Having investigating the case, Moscow OFAS found that “Russian Railways” OJSC had violated the Federal Law “On Protection of Competition” and issued an injunction for the company to stop violating the antimonopoly law.

Liability for such violations is specified in Article 14.31 of the Code of the Russian Federation on Administrative Violations. A fine for abusing dominance under Article 14.31 of the Code on Administrative Violations can reach up to 15% from the sum of the violators’ proceeds gained by selling goods (works, services) on the market where the violation was committed.