OREANDA-NEWS. September 30, 2010. The Office of the Federal Antimonopoly service in the Kemerovo region (OFAS Russia) fined “Russian Railways” OJSC 7 million Rubles for abusing market dominance, reported the press-centre of FAS Russia.

On 7th April 2010, Kemerovo OFAS Russia found that “Russian Railways” OJSC violated Clause 3 Part 1 Article 10 of the Federal Law “On Protection of Competition”. The company abused its market position by imposing disadvantageous conditions of the settlement contract with “Prokopyevsk Transport Department” OJSC. The antimonopoly body initiated an administrative case upon the signs of violating Article 14.31 of the Code of the Russian Federation on Administrative Violations, which specifies administrative liability for abusing market dominance. As a result, “Russian Railways” OJSC was fined seven million Rubles.

“Railway transportation remains a source of problems in the Kemerovo region, as well as in other Russian regions”, commented the OFAS’ determination Deputy Head of Kemerovo OFAS Russia Elena Kloster. “In spite of legislative changes and reorganization of federal railway transportation, “Russian Railways” OJSC in the person of its Kuzbass branch continues exercising actions that are contrary and not provided for by the federal laws. It creates conflicts between the owners of rail tracks that are not in common use and “Russian Railways” OJSC, some of which are very difficult to resolve. It would require not simply one or two new measures but the whole complex of reforms enabling to define the mechanisms for separating the functions of “Russian Railways” OJSC as a direct owner of the infrastructure and the carriers and to give the owners of rail tracks that are not in common use equal economic conditions with “Russian Railways” OJSC on the transport market”.