OREANDA-NEWS. April 18, 2013. The Arbitration Court of St Petersburg and the Leningrad Region upheld the decision and determination of the Office of the Federal Antimonopoly Service (FAS Russia) in the Leningrad region (Leningrad OFAS Russia) regarding “Russian Railways” OJSC.

In December 2012, the Commission of the antimonopoly body found that the railway monopolist violated the antimonopoly law (Clause 8 Part 1 Article 10 of the Federal Law “On Protection of Competition”).

Leningrad OFAS Russia established that in May – August 2012 “Russian Railways” OJSC used different codes of the Classes of Transport Rates in legal relations with “Petrokeramika” CJSC, “Ryabovo Ceramic Products Plant” Ltd. and “Pobeda LSR” OJSC - producers of porous commercial ceramic stone and consignors by railway transport. Thus, the monopolist fixed different costs of transportation services.

Referring to a letter of the Ministry of Transport of the Russian Federation, “Russian Railways” OJSC was forcing “Petrokeramika” CJSC to transport cargo under a code requiring a more expensive rate. At the same time, “Russian Railways” OJSC did not change the code of a Class of Transport Rate for “Pobeda LSR” OJSC.

OFAS also established that during three months in 2012 “Ryabovo Ceramic Products Plant” Ltd. transported porous commercial ceramic stone under a code requiring a more expensive rate.

Using different codes of the Classes of Transport Rates by “Russian Railways” OJSC for three different companies resulted in creating discriminatory conditions.

The antimonopoly body issued a determination to the railway company to undertake measures for creating and establishing the procedures, providing for mandatory informing consignors about changes of the codes of the Classes of Transport Rates for cargo transportation.

However, “Russian Railways” OJSC disagreed with the decision and determination of Leningrad OFAS Russia and filed a lawsuit to the Arbitration Court, which confirmed legitimacy and reasonableness of the actions of the antimonopoly body.

“The Federal Law “On Protection of Competition” imposes a number of restrictions upon economic entities that have dominant position on the market. It also concerns natural monopolies. In particular, it is prohibited to fix different prices (rates) for the same service for different consumers. We keep a watchful eye on compliance with the Federal laws”, emphasized the Head of Leningrad OFAS Russia, Vadim Vladimirov.

Having investigated the case, and governed by Article 14.31 of the Code of the Russian Federation on Administrative Violations, OFAS also held “Russian Railways” OJSC administratively liable and imposed a fine - 340,722 Rubles. The company also challenged the fine at Court.