Mikhaylovskiy GOK OAO Suffers From Collusion Exposed By FAS Between Promsintez OAO and FKP Zavod imeni Y.M. Sverdlova On Market Of Industrial Explosives-SKRIN

SKRIN reported that the Federal Antimonopoly Service (FAS Russia) has found that FKP Zavod imeni Y.M. Sverdlova and Promsintez OAO violated clause 1, part 1, article 11 of the Federal Law on protection of competition. The companies simultaneously fixed prices for several industrial explosives supplied to Lebedinskiy GOK OAO and Mikhaylovskiy GOK OAO. Earlier FAS initiated a case upon a petition of Lebedinskiy GOK OAO that complained about actions of manufacturers of industrial explosives. The FAS Commission concluded that simultaneous fixing of prices for industrial explosives was a result of collusion between FKP Zavod imeni Y.M. Sverdlova and Promsintez OAO that are competitors on the relevant market. As a result of such actions, the prices for explosives for the consumers increased considerably and exceeded the general price level set for other buyers. Due to specifics of state regulation of the market, Lebedinskiy GOK OAO and Mikhaylovskiy GOK OAO were unable to change the product suppliers.