The Russian Ministry of Internal Affairs initiated a criminal case based of FAS Russia’s recognizing the fact of collusion between “SUEK” OJSC and other participants of the market of power-generating coal

Among the grounds for initiating the criminal proceedings was that the Federal Antimonopoly Service (FAS Russia) recognized that “SUEK” OJSC and other participants of the market of power-generating coal had violated the antimonopoly law.
On 22nd December 2010, the FAS Russia’s Commission found that “SUEK” OJSC, “Russian Coal” OJSC and “Stroiservice” CJSC violated Clauses 1 and 3 Part 1 Article 11 of the Federal Law “On Protection of Competition”. The companies were engaged in competition-restricting agreements on the coal market, which were aimed at fixing coal prices and dividing the market of power-generating coal according to the composition of the buyers.
On 27th May 2010, FAS Russia initiated a case against “SUEK” OJSC and other participants of the market of power-generating coal upon the signs of violating Article 11 of the Federal Law “On Protection of Competition”. The Antimonopoly Service suspected violations of the antimonopoly law by the companies taking part in competition-restricting agreements (concerted actions), aimed at dividing the markets, fixing and maintaining prices and determining the tender winners.
The income gained by “SUEK” OJSC, “Russian Coal” OJSC and “Stroiservice” CJSC from selling coal under the conditions of the agreements between the companies that restricted competition on the coal market exceeded 100 million Rubles.
“SUEK” OJSC gained over five million Rubles illegal income as the difference of coal prices fixed on the competitive market in the absence of competition between “SUEK” OJSC, “Russian Coal” OJSC and “Stroiservice” CJSC because the companies had reached the competition-restricting agreement. Accordingly, damages to the counteragents of “SUEK” OJSC exceeded five million Rubles.
For the first time, FAS Russia investigated the case and proved the fact of cartel collusion between the participants of the market of power-generating coal working in close cooperation with the Russian Ministry of Internal Affairs and being able to use materials and information obtained through operational-and-search activity.
The FAS Russia’s conclusion on the case materials was transferred to the Russian Ministry of Internal Affairs to continue legal proceeding as part of investigating the crime under Article 178 of the Criminal Code of the Russian Federation.