FAS and Kemerovo Regional Authority discussed railcars shortage on the coal transportation market

On 30 September, at the Kemerovo region, FAS had a meeting with representatives of the Regional Authority, the West-Siberian Railway, coal companies and railcar fleet operators.  The antimonopoly authority was represented by the Head of Kemerovo OFAS Natalia Kukharskaya and Deputy Head of FAS Department for Transport Regulation, Natalia Yakovenkko. Participants discussed the situation with accumulating coal in the warehouses of coal companies.

Top managers of coal companies and rolling stock operators presented their positions on the reasons underlying the problem with coal export in the region. In their opinion, the main reasons are failure to execute contractual obligations by big rolling stock, introduction of logistical prohibitions and specifics of contractual conditions with ports.

The Antimonopoly Service is studying information submitted by the meeting participants and continues watching the situation in the Kemerovo region.  Should signs of breaching the antimonopoly law be revealed, FAS is prepared to immediately undertake the necessary measures.

Earlier FAS reported about verifying information about shortage of coal transportation rolling stock in the Kemerovo region.

Reference:

Article 10 of the Federal Law “On Protection of Competition” prohibits actions (omissions) by an economic entity with the dominant position, the results of which are or can be preventing, restricting, eliminating competition and (or) infringing the interests of other persons in entrepreneurial activity or consumers at large. Abusing dominance include, in particular, withdrawing goods from circulation if the result of such withdrawal is increased goods prices. Breaching this norm makes violators administratively liable under Article 14.31 and Article 14.32 of the Code of the Russian Federation on Administrative Violations.

Article 11 of the Federal Law “On Protection of Competition” prohibits agreements between competitors if such agreements lead or can lead to fixing or maintaining prices, dividing the market under the geographic principle, scope of goods sales or purchases, the range of goods or the categories of sellers or buyers. Breaching this norm entails administrative (Article 14.32 of the Code on Administrative Violations) and criminal (Article 178 of the Criminal Code of the Russian Federation) liability for the violators.