Head of the Russian Federal Antimonopoly Service Igor Artemyev
Photo: Dmitry Dukhanin
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Oil Cos. Face New Monopoly Charges
The Russian Federal Antimonopoly Service has begun another series of cases against the country’s large oil companies for refusing to lower prices for petroleum products on the domestic market, FAS head Igor Artemyev announced today. He said that he will send a letter to the oil companies today warning them of the cases. LUKOIL, Gazprom Neft, Rosneft, Surgutneftegaz and TNK-BP will be recipients.
The FAS maintains that the reduction in the duty on oil exports demands a reduction of prices on the domestic market. Artemyev said that his agency “is prepared for the negotiating process.” But, he added, “The formula for the price on the domestic market is the world price minus the export duty.” The FAS will wait 10-15 days after the warning letter is sent today for a reaction from the companies. If prices are not reduced by then, the cases will be initiated. If the FAS wins the cases, the companies will face retroactive fines.
The FAS began cases against LUKOIL, Gazprom Neft, Rosneft, Surgutneftegaz and TNK-BP on July 15 for taking advantage of their dominant position on the market in raising prices for airplane and diesel fuel. Russian Prime Minister Vladimir Putin had instructed the agency to look into the situation on July 11. “Wake up and do your job effectively and actively,” Putin ordered. TNK-BP and Gazprom Neft will be fined in those cases, Artemyev announced, adding that the companies’ appeal to Vneshekonombank for financial assistance will not affect the size of the fines.
www.kommersant.com
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