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FAS fines four stevedores 17 billion RUB for abusing dominance

Staff Writer | April 11, 2017
The Federal Antimonopoly Service (FAS Russia) issued injunctions to Novorossiysk Commercial Seaport (NCSP), First Container Terminal (FCT), Petrolesport and Vostochnaya Stevedoring Company (VSC) to eliminate antimonopoly violations and transfer the income gained as a result of abusing dominance to the federal budget.
Novorossiysk Commercial Seaport
Russia   A list of measures
Under the injunctions, the companies must transfer the income gained through violating the antimonopoly law to the federal budget: NCSP – 9.74 billion RUB, FCT JSC – 4.17 billion RUB, Petrolesport JSC and VSC Ltd. – 1.27 and 1.6 billion RUB accordingly.

The companies should transfer the funds within 180 calendar days upon receiving the injunctions.

Conduct requirements issued by the antimonopoly body include a list of measures that the companies should undertake to eliminate the violations.

FCT, Petrolesport and VSC are required to eliminate economically justified tariffs for container transshipment services, ranged depending on container types, in Russian Rubles.

The companies will also have to notify all counteragents to change prices for transshipment services.

If they decide to increase tariffs for transshipment services they must notify FAS about such decisions 45 days prior to the planned increase.

In addition to the above, the stevedores must publish information about the current tariffs on their official web-sites.

The timeframe for implementing the described measures – 30 calendar days from receiving the injunction.

FAS points out that the companies are required to pay the funds gained through abusing dominance using port assets, to the budget.

FAS emphasizes: The question of economic expediency of maintaining such a low level of lease fee for port infrastructure use remains open. We work on it together with the Ministry of Finances and the Federal Property Management Agency [Rosimuschestvo].

In March 2017 FAS found that NCSP , FCT JSC, Petrolesport JSC and VSC Ltd. violated the antimonopoly law by abusing dominance: fixing and maintaining monopolistically high prices.

In case of NCSP it concerned prices for transshipment of ore, fertilizers, containers, ferrous and non-ferrous metals, oil and petrochemicals in Novorossiysk port.

Violations committed by FCT and Petrolesport related to the prices for container transshipment services in Big Port St Petersburg seaport. FAS found that VSC Ltd. fixed and maintained monopolistically high prices for container transshipment services in Vostochny seaport.

Taking into account the case circumstances and in view of the decision of FAS Presidium on the punishments for the violations when damages are significantly higher than the maximum turnover fine, the antimonopoly body issued injunctions to the companies to stop violating the antimonopoly law and transfer the income gained through monopolistic activity to the federal budget.