“Lukoil-Volgogradneftepererabotka” Ltd. shall pay 500 million Rubles as a fine for abusing market dominance

On 10th September 2009, - the second “wave” of cases – FAS Russia found that “Lukoil” OJSC and members of the same group of persons: “Lukoil-VNP” Ltd., “Lukoil-UNP” Ltd., “Lukoil-PNOS” Ltd. and “Lukoil-NORSI” Ltd. violated Article 10 of the Federal Law “On Protection of Competition” (that prohibits abusing market dominance) and issued a relevant determination. The group of persons of “Lukoil” OJSC was withdrawing goods from circulation that pushed up prices on the wholesale market of petrol, aviation kerosine and diesel fuel.
Earlier “Lukoil-UNP” Ltd., “Lukoil-PNOS” Ltd. and “Lukoil-NORSI” Ltd., that are members of the same group of persons with “Lukoil” OJSC, also withdrew their appeals of the FAS Russia’s decision and determination. At the moment, proceedings on all cases are closed.
In autumn 2008, FAS Russia found that “Rosneft”, “Gazpronm Neft”, “LUKOIL” and “TNK-BP” violated the antimonopoly law by fixing and maintaining in Q 4 2007 – the first six months of 2008 monopolistically high prices for motor petrol, aviation kerosine, fuel oil and diesel fuel. The companies were fined from 1.1 to 1.5 billion Rubles.
In the secon six months of 2009, as part of the second “wave” of cases against oil companies, FAS fined “Rosneft”5.28 billion Rubles, “Gazpronm Neft”- 4.7 billion Rubles, “LUKOIL” - 6.5 billion Rubles, and “ТNК-ВР” - 4.2 billion Rubles. The companies abused their market dominance by withdrawing goods from circulation, which resulted in increasing prices for petrochemicals, and by creating discriminatory conditions for independent market participants.
On 9th February 2011, FAS Russia initiated cases against “Rosneft”, “Gazpronm Neft” and “LUKOIL” due to growth of prices for aviation kerosine and diesel fuel at the end of 2010 – beginning of 2011. This is the so-called “third wave” of antimonopoly cases against the largest Russian oil companies.