ARBITRATION: JUDGEMENT OF THE FEDERAL ANTIMONOPOLY SERVICE OF THE RUSSIAN FEDERATION AGAINST LIMITED LIABILITY COMPANY «IL.A.N.KURAGINSKY» IS LAWFUL

The service earlier found that the company had violated the Federal Law on the Protection of Competition. The company set unreasonably high prices for shipment of the state intervention fund grain by its elevator.

On the fourth of August, 2020 the Moscow Arbitration Court confirmed the lawfulness of the judgment in the case on violation of the Antitrust law by the company Il.A.N.Kuraginsky LLC.

In March 2020 the Committee of the Federal Antimonopoly Service of the Russian Federation revealed that Il.A.N.Kuraginsky LLC, contracted for the storage of grain from stocks of the intervention fund, had used its dominant market position. The company set a monopoly high price for vehicle shipment of the grain acquired in the state intervention fund within commodity intervention. The tariff for supply of the elevator exceeded not just expenses and income necessary for its provision, but also the price formed in a competitive environment in a comparable commodity market.

“Cost for elevator supply, including supply of grain shipment, is a significant link in the chain of floor and bakery products price formation. Within the intervention fund the unreasonable tariffs rising is considered by the competition authority as abuse of dominance. Such actions of economic entities do not help to stabilize prices in the agricultural market and therefore achieve the goals of intervention. The judgment of the Arbitration Court that supported the position of the Authority is a further proof”, - Head of the  Department for Control over Agro-Industrial Complex Larisa Vovkivscaya commented.