OREANDA-NEWS. October 21, 2014. Moscow Arbitration Court upheld the decision and determination of the Federal Antimonopoly Service (FAS Russia) on a case against the group of persons comprising the “Market Council” Non-Profit Partnership and “ATS” OJSC for violating the Federal Law “On Protection of Competition” (Part 1 Article 10).

On 5th June 2014, FAS established the fact of violating the antimonopoly law by fixing additional requirements to organizations that can give financial guarantees to the participants of the wholesale electric power (capacity) market in the Regulations on the procedure for granting financial guarantees on the wholesale market. Such requirements were mandatory for trading on the wholesale market.

In particular, such organization must be a bank, the amount of own capital must be have over 4 billion RUB. and have an international long-term creditworthiness rating.

The above version of the Regulations on the procedures for granting financial guarantees on the wholesale market unreasonably reduced the number of economic entities that are capable to render services for providing financial guarantee on the wholesale market which infringes the interests of wholesale market participants.

FAS issued a determination to the “Market Council” Non-Profit to exclude the requirements that were contrary to the law but obligated an economic entity, a candidate for certification within the system of financial guarantees on the wholesale market, to have the bank status, an international ranking assigned by international rating agencies and a certain amount of own capital.

The “Market Council” Non-Profit Partnership and “ATS” OJSC disagreed with FAS decision and determination and filed a lawsuit to Moscow Arbitration Court; the Court, however, supported FAS Russia.