FAS SUSPECTS THAT “ILA.N. KULAGINSKY” FIXED MONOPOLISTICALLY HIGH PRICES FOR GRAIN SHIPMENTS
FAS opened an antimonopoly case against the warehouse agent of the grain from the state grain intervention fund
Earlier FAS received a statement from the Ministry of Agriculture of the Russian Federation on unreasonably high prices for shipping grain from the state intervention fund by elevators that store and ship grain.
In the course of an inspection, the Antimonopoly Service concluded that actions of the warehouse agent in the person of “IlA.N. Kuraginsky” Ltd. (the Krasnoyarsk territory), with whom a contract for storing grain from the stock of the intervention fund, had elements of breaching the Federal Law “On Protection of Competition” [1].
FAS established that executing a Governmental order [2] the agent in the person of “OZK” JSC concluded several grain buying-and-selling contracts from 03.10.2018 to 10.12.2018, the supply basis of the elevator owned by “IlA.N. Kuraginsky” Ltd. In accord with the information received by FAS from the company, the costs of shipment of commercial grain and the grain form the intervention fund in 2018 was the same for road and railway carriage. At the same time, according to the costs calculations, provided by “IlA.N. Kuraginsky” Ltd. for shipping the 1st grain ton by road, it included overheads that are not necessary for providing such service. Also the prices of gain shipment service exceeded the price formed on a comparable competitive market.
“An analysis of them materials available to FAS showed that actions of the company, which has the dominant position on the markets of storing grain from the intervention fund, have elements of violating the law on competition protection in the part of fixing monopolistically high prices for grain shipment”, commented Irina Yepifantseva, Deputy Head of FAS Department for Control over the Agro-Industrial Complex. “The elevators that constitute infrastructure facilities on the grain market to a considerable extent determine its performance efficiency. The FAS objective is to ensure that they comply with the antimonopoly law”.
[1] Part 1 Article 10 of No. 135-FZ Federal Law “On Protection of Competition” of 26.07.2006.
[2] No. 1051-r order of the Government of the Russian Federation of 30.05.2018 on selling 3rdgrade grain from the stock of the federal intervention fund without on-exchange trade
FAS opened an antimonopoly case against the warehouse agent of the grain from the state grain intervention fund
Earlier FAS received a statement from the Ministry of Agriculture of the Russian Federation on unreasonably high prices for shipping grain from the state intervention fund by elevators that store and ship grain.
In the course of an inspection, the Antimonopoly Service concluded that actions of the warehouse agent in the person of “IlA.N. Kuraginsky” Ltd. (the Krasnoyarsk territory), with whom a contract for storing grain from the stock of the intervention fund, had elements of breaching the Federal Law “On Protection of Competition” [1].
FAS established that executing a Governmental order [2] the agent in the person of “OZK” JSC concluded several grain buying-and-selling contracts from 03.10.2018 to 10.12.2018, the supply basis of the elevator owned by “IlA.N. Kuraginsky” Ltd. In accord with the information received by FAS from the company, the costs of shipment of commercial grain and the grain form the intervention fund in 2018 was the same for road and railway carriage. At the same time, according to the costs calculations, provided by “IlA.N. Kuraginsky” Ltd. for shipping the 1st grain ton by road, it included overheads that are not necessary for providing such service. Also the prices of gain shipment service exceeded the price formed on a comparable competitive market.
“An analysis of them materials available to FAS showed that actions of the company, which has the dominant position on the markets of storing grain from the intervention fund, have elements of violating the law on competition protection in the part of fixing monopolistically high prices for grain shipment”, commented Irina Yepifantseva, Deputy Head of FAS Department for Control over the Agro-Industrial Complex. “The elevators that constitute infrastructure facilities on the grain market to a considerable extent determine its performance efficiency. The FAS objective is to ensure that they comply with the antimonopoly law”.
[1] Part 1 Article 10 of No. 135-FZ Federal Law “On Protection of Competition” of 26.07.2006.
[2] No. 1051-r order of the Government of the Russian Federation of 30.05.2018 on selling 3rd grade grain from the stock of the federal intervention fund without on-exchange trade