OREANDA-NEWS. On November 09, 2007 The Federal Antimonopoly Service (FAS Russia) prepared a decision and determination requesting "Gazprom" OJSC to stop violating Part 1 Article 10 of the Federal Law "On Protection of Competition" with regard to infringement of the rights of "Kazan'orgsynthez" OJSC, reported the press-centre of FAS Russia.

Earlier FAS Russia recognized that "Gazprom" OJSC violated Part 1 Article 10 of the Federal Law "On Protection of Competition" (infringing the interests of "Kazan'orgsynthez" OJSC).

The case was initiated upon the petition of "Kazan'orgsynthez".

The law was violated by ill-grounded refusal of "Gazprom" OJSC to enter into an ethane sale contract with "Kazan'orgsynthez" OJSC and instead imposing an agreement for processing ethane into polyethylene in 2007.

FAS Russia requested "Gazprom" OJSC to:

- Terminate the Contract of 31.05.2007 for processing ethane into polyethylene within two months after the date of receiving the decision;

- Do not further impose contract terms and conditions upon "Kazan'orgsynthez" OJSC that are economically and technologically disadvantageous and (or) infringing the company's interests;

- Simultaneously with terminating the Contract of 31.05.2007 for processing ethane into polyethylene, conclude an ethane sale Contract with "Kazan'orgsynthez" OJSC to the amount relevant to technological and economic capabilities, and at the price (without transportation costs), exceeding the existing ethane production and distribution costs at "Orenburggazprom" Ltd. for no more than 20%;

- Upon signing the above sale contract, do not change the type of contract relations, legally implementing consumption of the "Orenburggazprom"- produced ethane by "Kazan'orgsynthez" OJSC for the purposes of polyethylene production;

- In case of additional ethane production and distribution costs, "Gazprom" OJSC should submit for provisional (30 days prior to the planned price changing) approval to FAS Russia the relevant substantiation of ethane price changes (costs and profit calculation).

Signing an ethane sale contract with "Kazan'orgsynthez" OJSC by any member of the "Gazprom" group of persons will constitute proper execution of the given part of the determination.

FAS Russia must be informed on fulfillment of its determination within two months after the decision was received by the company.

The charges against "Kazan'orgsynthez" OJSC were dismissed.