THE APPEAL UPHELD THE DECISION OF THE FAS RUSSIA IN RESPECT OF RUSSIAN RAILWAYS

11-01-2021 | 15:16

Earlier, the Authority recognized the company as violating antimonopoly legislation

The Ninth Arbitration Appeal Court supported the position of the Antimonopoly Service in the case against Russian Railways JSC. As the FAS Russia found out earlier, the organization set a monopolistically high price for thermal energy, abusing its dominant position and violating antimonopoly laws.

“Taking into account that since January 2019, the legislation provides for full liberalization of relations between heat producers and consumers, it is necessary that free pricing should be a tool for achieving mutually beneficial solutions that ensure the profitability of their activities. The Authority intends to actively apply antimonopoly response mechanisms to prevent abuse by economic entities that occupy a dominant position in the market,” Vitaly Korolev, Deputy Head of the FAS Russia said.

For reference:

The FAS Russia established the fact of violation of the antimonopoly legislation by Russian Railways JSC after considering the application of Rikvest-Service LLC on the actions of the company. The organization unilaterally unreasonably increased the price of thermal energy in the form of steam, which is supplied to Rikvest-Service by the boiler house in Samara, which is on the balance sheet of Russian Railways JSC.

Since January 2019, the legislation provides for full liberalization of relations between heat producers and consumers (business). In accordance with it, the price of thermal energy is an essential condition of the contract and is determined by agreement of the parties.



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