SUPREME COURT ABOLISHED JUDICIAL ACTS OF THREE LOWER COURTS ON A DISPUTE WITH “NOVOROSSIYSK COMMERCIAL SEAPORT”

The supreme court of the Russian Federation abolished judicial acts of three lower courts on a dispute with “Novorossiysk commercial seaport” and forwarded the case for reconsideration

FAS found that “Novorossiysk Commercial Seaport” PJSC violated the antimonopoly law by fixing and maintaining monopolistically high prices in 2015 for transshipment services of ore, fertilizers, containers, ferrous and non-ferrous metals, oil and petrochemicals in Novorossiysk seaport. It is a breach of Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition”.

FAS issued an order to stop the violation and transfer unlawfully gained income to the budget.

“Novorossiysk Commercials Seaport” PJSC appealed the decision and order of the antimonopoly authority judicially. Courts of three instances pronounced illegitimacy of FAS acts.

Deputy Head of FAS Sergey Puzyrevskiy reported after the judicial hearing: “On 3 October 2018, the Supreme Court of the Russian Federation reversed judicial acts of three lower Courts in a dispute with “Novorossiysk Commercials Seaport” PJSC and forwarded the case for reconsideration, thus, allowing FAS claim”.

The Supreme Court of the Russian Federation considered FAS complaint about the rulings of lower Courts on the case against “Novorossiysk Commercials Seaport” PJSC. Several years ago, FAS also found that the company breached the Federal Law “On Protection of Competition” (Clause 1 Part 1 Article 10). In FAS opinion, “Primorsky Commercial Port” Ltd. fixed and maintained monopolistically high prices in 2015 for oil transshipment services in Primorsky Seaport, enabling 263.84% profitability growth of “Primorsky Commercial Port” Ltd. (more that twofold increase in comparison with 2014). “Primorsky Commercial Port” Ltd. was given an order to stop the violation.

“The Supreme Court of the Russian Federation confirmed legitimacy of FAS decision and order and dismissed the claim of “Primorsky Commercial Port” Ltd.”, pointed out Sergey Puzyrevskiy.

“Since 2014 “Novorossiysk Commercials Seaport” and “Primorsky Commercial Port” were fixing m monopolistically high price for the services of cargo loading and storage. The super-income they gained increase transportation costs for Russian exporters. Setting the tariffs in US dollars and increasing the Ruble equivalent at the end of 2014 – the beginning 2015 “Novorossiysk Commercials Seaport” and “Primorsky Commercial Port” increased their revenue by 2.5 times, while the costs of the stevedore company practically did not grow in Rubles”, commented Deputy Head of FAS Alexander Redko. “We welcome the ruling of the Supreme Court of the Russian Federation and hope for its fair re-consideration at Court of First Instance”.