FAS PRESIDIUM RECOGNIZED THAT THE CASE AGAINST THE GAZPROM GROUP IS ONE OF THE BEST

The antimonopoly remedies prevented building up an inefficient gas-distribution infrastructure and tariff growth in the Samara region

“Gazprom” PJSC, “Gazprom Mezhregiongaz” Ltd., the Governor of the Samara region and the Ministry of the Samara region for Energy and the Housing-and-Utilities concluded an agreement designed to form double gas-transportation infrastructure.

Under the frame of the agreement, 2016-2020 Programme for developing gas supply and gasification in the Samara region was approved to pursue the exclusive interests of the economic entities – members of the group of “Gazprom” PJSC.

As established by FAS Fuel-and-Energy and Chemical Industry Department in the course of an inspection, creating the parallel infrastructure was not determined by any objective reasons and had not technological, economic or other rationale.

Changing the gas-supply scheme for “VAZ” power plant was designed to shift it from the current gas-distribution company to a member of the Group of “Gazprom” PJSC and to push an independent gas-distributor away from the gas supply and gasification market.

Having investigated the case, FAS found that the Governor of the Samara region and the Ministry of the Samara region for Energy and the Housing-and-Utilities the Group of “Gazprom” PJSC, “Gazprom Mezhregiongaz” Ltd. violated Part 4 Article 16 of the Federal Law “On Protection of Competition”.

The companies disagreed with the FAS decision and filed a lawsuit. The Court of First Instance and the Appeal Court ruled that concluding and implementing the agreement between the Samara regional authorities and companies from the Group of “Gazprom” PJSC “was not determined by any objective reasons and had not technological, economic or other grounds” and the only purpose was to “eliminate “SVGK” Ltd. from the market of gas-transportation services in the Stavropol region and Toliatti”.

Violations of Part 4 Article 16 of the Federal Law “On Protection of Competition” are administratively p0unishable under Article 14.32 of the Code of the Russian Federation on Administrative Violations.

Since at the time of being held administratively liable “Gazprom” PJSC and “Gazprom Mezhregiongaz” Ltd. fully executed the FAS warning, the fine for “Gazprom” PJSC was 211 million RUB, and “Gazprom Mezhregiongaz” Ltd. – 412,000 RUB.

“As a result of the case investigation FAS formed a precedent practice that confirmed unlawfulness of the agreements between economic entities and the authorities aimed at creating economically inexpedient infrastructure that increases the industry costs and prices on related goods”, commented Head of FAS Fuel-and-Energy  and Chemical Industry Department, Dmitry Makhonin.

Earlier Deputy Had of FAS Anatoly Golomolzin said: “FAS combined the functions of the antimonopoly body and the tariff regulator. Antimonopoly measures prevented building up an inefficient gas-distribution infrastructure. N its turn, it restricts tariff growth in the regions”.