OREANDA-NEWS. July 15, 2008. Due to increasing prices for aviation fuel, the Federal Antimonopoly Service (FAS Russia) tightens its control over these markets, reported the press-centre of FAS Russia. 

In general, since the beginning of 2008 FAS Russia initiated over 150 antimonopoly cases in the fuel-and-energy complex. In particular, it has initiated multiple investigations of airports and refueling stations.

For instance, on 18th June 2008, the Central Office of FAS Russia initiated a case against the "Fuel Supplying Company" CJSC for violating Article 10 of the Federal Law "On Protection of Competition". The company fixed monopolistically high prices for aviation fuel in Yuzhno-Sakhalinsk airport and unreasonably refused to sign a fuel-storing contract with "Vladivostok-Avia" OJSC. The same day, the Krasnoayrsk Regional Office of FAS Russia initiated a case against "Siberia Avia Service" CJSC, which had imposed unfavorable contract conditions for buying and selling aviation fuel and offering services for refilling aircrafts, as well as introduced unjustified reduction of supplies. The case will be heard on 16th July 2008.

The Novosibirsk Regional Office of FAS Russia has initiated a case against "Tolmachevo Airport" OJSC for abusing its dominant market position. The antimonopoly office suspects that the company created obstacles to "Airjet-Tolmachevo" Ltd. preventing it from entering the market of aircrafts refueling. The hearing is scheduled on 24th July 2008.

Furthermore, FAS Russia initiated proceedings and continues investigating "Kamchatkanefteproduct" OJSC that evaded offering services for transshipment and storage of aviation fuel, as well as airports in Ulan-Ude, Chita, Makhachkala and other cities, which had the highest prices on aviation fuel. The Antimonopoly Service is also scrutinizing fuel supplies to the Moscow air complex, which services over 65% of all passengers in Russia.

FAS Russia has also initiated several cases in the field of commercial aviation. For instance, the hearing of the case against Rosaviatsia (the Federal Agency for Air Transportation), which forbade relocation of air carriers from airports, is scheduled on 28th July 2008.

In August 2008, the Antimonopoly Service will hear the case against the "Yakutsk Airport" State Unitary Enterprise, the Ministry of Transport and the President of the Sakha (Yakutia) Republic for competition-restricting actions. FAS Russia will also pass decisions regarding "Saratov Airlines" OJSC (which refused to sign a contract with "Centre-Avia" air carrier) and "Vladivostok Avia" OJSC (which restricted the access of "Transaero" air carrier to the Vladivostok - Moscow route).

Currently FAS Russia is considering the proceedings against "Koltsovo Airport" OJSC (evading a contract with "Sibir" air carrier ("S7 Airlines") and "KD-avia" OJSC (evading a contract with "Sibir" air carrier ("S7 Airlines") for servicing in Khrabrovo airport in Kaliningrad).

FAS Russia has already uncovered a number of anticompetitive actions of fuel companies. For instance, ЗАО "Gazpromneft-Kuzbass" CJSC and "Tomsknefteproduct VNK" OJSC were fined 25 and 31 m Rubles accordingly for concerted actions towards fixing process on oil products in Tomsk and the Tomsk region. Cases related to similar violations in Krasnoyarsk ("Sibneft-Krasnoyarsknefteproduct" OJSC, "Fortuna Plus" Ltd. and "Krasnoyarsknefteproduct" OJSC) and the Karachaevo-Cherkessian Republic ("Karachaevo-Cherkessknefteproduct" OJSC and "Foton" CJSC) are currently being processed. FAS Russia also initiated proceedings against "Sibneft-Omsknefteproduct" OJSC for abusing dominant position in fixing process for oil products in the Omsk region.

The Regional FAS Russia Offices have also exposed anticompetitive actions of oil companies. The Stavropol Regional Office of FAS Russia already fined "Rosneft-Stavropolye" Oil Company" OJSC (26 m Rubles) and "Lukoil-Yugnefteproduct" Ltd. (49 m Rubles) for concerted fixing of prices on oil products. Similar violations were uncovered in the Astrakhan region - the violators were "Lukoil-Nizhnevolzhsknefteproduct" Ltd. and "Gazprom dobycha Astrakhan" Ltd. The Irkutsk Regional Office of FAS Russia initiated a case against "Rosneft" for abusing dominant position, which resulted in increased prices on the retail oil products market (the hearing is planned at the end of July 2008).

At the same time, the measures taken by the antimonopoly authorities have not stabilized the situation and failed to achieve considerable price reduction. For that matter FAS Russia intends to intensify its work. The Antimonopoly Service continues scrutinizing the market of aviation fuel and aircraft servicing; data obtained FAS Russia show that the Antimonopoly Service will initiate several investigations and adapt further measures of antimonopoly regulations.