A PYMNTS Company

Russia: Gazprom agreement found to be simultaneously illegal, but ‘socially justified’

By  |  March 18, 2013

Russia’s Federal Antimonopoly Service is reportedly considering opening an official case against mega gas conglomerate Gazprom after the authority’s formal investigation into the company found evidence for collusion concerning its large-diameter pipe supplies. In what the deputy head of the FAS Andrei Tsarikovsky called a move of common sense, the authority found that Gazprom made agreements with pipe manufacturers that were “illegal” from one standpoint, yet “legitimate and socially justified” from the standpoint of competition law, according to reports. Gazprom apparently made agreements with the manufacturers at a time when there was no competitive market in the industry; Tsarikovsky says that situation has now changed and that Gazprom will be fined for repeat offenses of the coordinated activities among the parties.

 

Full Content: Russian Legal Information Agency

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.