FAS REPORTED FINE OF MORE THAN 1 BILLION RUB FOR A CARTEL ON THE STOCK EXCHANGE OF OIL PRODUCTS

Such a decision was made by the antimonopoly service

The FAS Russia imposed administrative fines on Solid-Commodity Markets JSC and A-OIL LLC, which were found guilty of entering into a cartel agreement on the stock exchange of oil products in 2018. Each company has to pay more than 509 million rubles*. The actions of traders affected the growth of prices for oil products on the exchange. Since the exchange is indicative for the oil products market, such actions could lead to a general increase in prices for oil products.

Overview of court proceedings:

The case of violation of the antimonopoly law was initiated in February 2019, however, Solid-Commodity Markets JSC attempted to raise objections to the competencies of the antimonopoly body to control price collusion on the exchange.

In June 2020, the Federal Arbitration Court of the Moscow District found the actions of the antimonopoly body, the order of the FAS Russia and the ruling on the appointment of the case for consideration as lawful, and in October 2020, the Supreme Court of the Russian Federation refused Solid-Commodity Markets JSC to refer the cassation appeal** to the Judicial Collegium for Economic Disputes of the Supreme Court of the Russian Federation.

As the order of the antimonopoly service to initiate a case was found to be lawful and justified, the FAS Russia issued a decision in the case against oil traders, finding them guilty of entering into a cartel agreement on the stock exchange of oil products in 2018.

Solid-Commodity Markets JSC and A-OIL LLC expressed their disagreement with the decision of the FAS Russia in the case of violation of antimonopoly law, and, in the spring of 2021, appealed the decision of the antimonopoly body in the first instance, which recognized the decision of the FAS Russia as invalid. However, on July 1, 2021, the Ninth Arbitration Court of Appeal overturned the decision of the court of the first instance fully and dismissed the companies' claims, taking the side of the FAS Russia.

*Under part 1 of Article 14.32 of the Code of Administrative Offences of the Russian Federation

** Against the decision of the Ninth Arbitration Court of Appeal of 19.12.2019 and the decision of the Federal Arbitration Court of the Moscow District of 16.06.2020 in c