Moscow OFAS Russia lawfully fined “Mosregiongaz” Ltd. more than a million Rubles

On 22nd September 2009, Moscow OFAS Russia found that “Mosregiongaz” Ltd. violated Part 1 Article 10 of the Federal Law “On Protection of Competition”. The company abused its dominance on the market of sale and transportation of natural gas.
Moscow OFAS Russia received a complaint from “Bakovka Plant” CJSC that “Mosregiongaz” Ltd. had applied additional penalty coefficients for excessive gas consumption by the Plant and infringed the interests of “Bakovka Plant” CJSC by imposing disadvantageous contract conditions for supplying gas.
Moscow OFAS Russia issued a determination to “Mosregiongaz” Ltd. to change the contract conditions. “Mosregiongaz” Ltd. challenged the decision and determination at court.
Moscow City Arbitration Court allowed the claim of “Mosregiongaz” Ltd. to revoke the decision and determination issued by Moscow OFAS Russia. The 9th Arbitration Appeal Court also took the side of “Mosregiongaz” Ltd.
The Federal Arbitration Court of the Moscow District allowed the cassation appeal of Moscow OFAS Russia and reversed the judicial acts of the Court of First Instance and the Appeal Court, which invalidated the decision and determination of the antimonopoly body regarding “Mosregiongaz” Ltd.
Thus, on 11th November 2010, the Cassation Court confirmed legitimacy and reasonableness of the actions undertaken by Moscow OFAS Russia.
The fine imposed by the antimonopoly body was 565'633'894 Rubles.