FAS to prosecute TNK-BP Holding

8 December 2009 (13:36)

The Federal Antimonopoly Service of the Russian Federation intends to contest the court’s ruling regarding the case of TNK-BP Holding. The oil company was accused of violating the competition protection laws but was later acquitted by the court due to a number of legal precedents that had been favorable for the oil companies.

Tyumen Region Arbitration Court agreed with TNK-BP that the FAS’s orders had been illegal and also declared the administrative fine imposed on the company for abuse of its dominant position on the oil wholesale market illegitimate.

The Federal Antimonopoly Service, however, insists that its sanctions were well-grounded and that the oil company’s antimonopoly legislation offenses were proved. So the FAS is going to write up a petition of appeal against Tyumen Region Arbitration Court’s ruling.

The FAS declared earlier that TNK-BP Holding had violated Article 10 (part 1) of the Competition Protection Act. The Service believes the oil company abused its abuse of its dominant position on the oil wholesale market in the first half of 2009; for one, it recalled a number of its oil products, which led to a price increase. Also, TNK-BP Holding was suspected of discriminating against the independent market players. This was why the Service imposed a 4.19-billion-ruble fine on the company.

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