OREANDA-NEWS. December 07, 2011.  “Lukoil-Volganefteproduct” Ltd. paid 45.3 million Rubles as a fine imposed for abusing market dominance on the retial market of motor fuel in Nizhny Novgorod, reported the press-centre of FAS Russia.

On 28th October 2009, Nizhny Novgorod OFAS Russia found that “Lukoil-Volganefteproduct” Ltd. violated Part Article 10 of the Federal Law “On Protection of Competition” in the part of fixing monopolistically high retial prices for motor fuel (grades А-76, АI-92, АI-95) and diesel fuel in October 2008 – March 2009. Arbitration Courts of First, Appeal and Cassation Instances confirmed legitimacy of the decision made by the antimonopoly body.

Upon the fact of abusing market dominance, “Lukoil-Volganefteproduct” Ltd. was held administratively liable and fined 45.3 million Rubles.

The company filed a lawsuit against the determination of Nizhny Novgorod OFAS Russia.

Having considered the claim of “Lukoil-Volganefteproduct” Ltd., the Arbitration Court of First Instance changed the determination of the antimonopoly body, pronouncing that the size of the fine should be just over 26 million Rubles. According to Nizhny Novgorod Arbitration Court, Nizhny Novgorod OFAS unlawfully included в the income of “Lukoil-Volganefteproduct” Ltd. from retail sales of petrol (grade АI-98), the income from selling oil products through petrol-filling stations under state and municipal contracts and the income from selling oil products to companies under supply contracts (payment via bank transfer) on the basis of which OFAS calculated the fine.

The antimonopoly body disagreed with the judgment of Nizhny Novgorod Arbitration Court and filed a claim to the First Arbitration Appeal Court to reverse the judgment of the Court of First Instance. According to Nizhny Novgorod OFAS, Nizhny Novgorod Arbitration Court correctly excluded the income from retail sales of gasoline (grade АI-98) from the sum, upon which to calculate the fine (in course of the investigation, “Lukoil-Volganefteproduct” Ltd. mistakenly included this sum in the overall income). However, the Court unreasonably concluded that the income from selling oil products through petrol-filling stations under state and municipal contracts and the income from selling oil products to companies under supply contracts (payment via bank transfer) also should not be taken into account calculating the fine.

The First Arbitration Appeal Court agreed with the position of the antimonopoly body and upheld the determination on imposing the 45.3 million Rubles fine upon “Lukoil-Volganefteproduct” Ltd.