Gazprom paid 17.5 million Rubles for fixing monopolistically high price for liquid sulfur

The Federal Arbitration Court of the Moscow Region dismissed a cassation appeal of “Gazprom” OJSC and upheld the rulings of Courts of First Instance and Appeal Court, which had confirmed legitimacy of a determination issued by the Federal Antimonopoly Service (FAS Russia) to hold “Gazprom” OJSC administratively liable for abusing dominance in the part of fixing and maintaining monopolistically high prices for liquid sulfur (Part 2 Article 14.31 of the Code on Administrative Violations).

The Antimonopoly Service analyzed pricing for complex mineral fertilizers (phosphate-containing fertilizers), and upon the findings initiated an antimonopoly case against a group of persons comprising “Gazprom” OJSC, “Gazprom Dobycha Astrakhan” Ltd, ” “Gazprom Dobycha Orenburg” Ltd, “Gazpromsera” Ltd. and “Gazpromtrans” Ltd.

On 9th June 2012, the FAS Commission found that “Gazprom” OJSC» violated Part 1 Article 10 the Federal Law “On Protection of Competition” (fixing and maintaining monopolistically high prices).

The Antimonopoly Service fined the company over 17.5 million Rubles.

Courts of three instances pronounced legitimacy of the FAS decision. Currently reasonableness of holding the company administratively liable and imposing the fine has also been confirmed.