On 21 April 2008, the Federal Antimonopoly Service (FAS Russia), governed by Clause 2 Part 1 Article 47 of the Federal Law «On Protection of Competition», adjourned the case against the Irkutsk Regional Authority, the «Siberian Cement» Holding Company, «Angarsky Cement» Ltd. and the East-Siberian Railway - a branch of «RZhD» OJSC for breaching Clauses 3 and 4 Article 16 of the Federal Law «On Protection of Competition» (concerted actions).
The Irkutsk Regional Authority and the «Siberian Cement» Holding Company, which is the largest manufacturer of cement in the Siberian Federal District, violated the antimonopoly legislation by entering in 2007 into a contract under which the «Siberian Cement» Holding Company OJSC undertook an obligation not to sell cement outside the Irkutsk region.
In September 2007, executive officers of the East-Siberian Railway - a branch of «RZhD» OJSC issued several orders forbidding cement shipping outside the Irkutsk region; and on 20th September 2007 the schedule for shipping cement to the customers, agreed between the Irkutsk Regional Authority and «ZapSibCement» Ltd. (a member of the group of the «Siberian Cement» Holding Company OJSC), came into force, according to which companies stopped shipping the cement produced at «Angarsky Cement» Ltd. outside the Irkutsk region.
As a result, the construction industries of the neighbouring regions were left without cement, and construction plans for implementing the National Project «Affordable and Comfortable Housing - to the Citizens of Russia» were put in jeopardy.
FAS Russia trusts that the actions of the Irkutsk Regional Authority, the «Siberian Cement» Holding Company OJSC, «Angarsky Cement» Ltd. and the East-Siberian Railway - a branch of «RZhD» OJSC violated the antimonopoly legislation, specifically:
- In 2007 in the Irkutsk region there was a competition-restricting agreement between the Irkutsk Regional Authority and the «Siberian Cement» Holding Company OJSC,
- and concerted actions with the East-Siberian Railway - a branch of «RZhD» OJSC, «Angarsky Cement» Ltd. and «ZapSibCement» Ltd. aimed at territorial division of the goods market and restricting the access of cement consumers, that do not operate in the Irkutsk region, to the goods market.
Under the Code of Administrative Violations, executives, who orchestrated anticompetitive agreements, are punishable with fines or disqualification for up to three years, and the companies involved - with a fine up to 4% of their annual turnover.
