OREANDA-NEWS. December 15, 2011. The 9th Arbitration Appeal Court in Moscow confirmed legitimacy of the decision and determination of the Federal Antimonopoly Service (FAS Russia) regarding “Izhevsk Mechanical Works” Federal State Unitary Enterprise and “Izhevsk Arsenal” Ltd. on the case about violating the antimonopoly law on the market of non-military weapons in the Russian Federation, reported the press-centre of FAS Russia.

On 17th February 2011, the FAS Commission recognized the case on concluding an agreement between “Izhevsk Mechanical Works” Federal State Unitary Enterprise and “Izhevsk Arsenal” Ltd., which gave exclusive rights for acquiring МR-654К gas-cylinder pistol of “Izhevsk Arsenal” Ltd. It constitutes a violation of Part 2 Article 11 of the Federal Law “On Protection of Competition”.

The case was initiated upon a complaint of “Kornet” Ltd. and “T.P. Artur” Ltd. against “Izhevsk Mechanical Works” Federal State Unitary Enterprise that refused to conclude a contract for supplying the product.

In course of the investigation, the FAS Commission discovered that “Izhevsk Mechanical Works” Federal State Unitary Enterprise and “Izhevsk Arsenal” Ltd. concluded a contract for supplies of sports and hunting weapons, fire weapons, duty, pneumatic, gas-cylinder weapons and self-defence weapons and spare parts, tools, accessories for them. Under the contract, the parties concluded an additional agreement that restricted wholesale sales of МR-654К gas-cylinder pistol and its modifications to other legal entities, except “Izhevsk Arsenal” Ltd.

Having studied the case file, the FAS Commission concluded that actions of “Izhevsk Mechanical Works” Federal State Unitary Enterprise and “Izhevsk Arsenal” Ltd. could have resulted in preventing, restricting or eliminating competition on the market of non-military weapons in the Russian Federation, in particular, unreasonably refusal of “Izhevsk Mechanical Works” Federal State Unitary Enterprise to conclude contracts with potential buyers of МR-654К gas-cylinder pistol.

“Izhevsk Mechanical Works” Federal State Unitary Enterprise disagreed with the decision of the antimonopoly body and filed a lawsuit to the Arbitration Court. The Court found the company’s arguments unreasonable. The 9th Arbitration Appeal Court also dismissed the claim, confirming the rightness of FAS Russia.

“The motive for concluding the anticompetitive agreement could have been a desire of “Izhevsk Arsenal” Ltd. to become an exclusive distributor of a sought-after product in the spring – summer period, when consumer spending increases dramatically, which is typical for the market in question”, pointed out Deputy Head of FAS Department for Control over Industry and Defence Complex, Mr. Andrey Greshnev.