On 11th August 2008, the Federal Antimonopoly Service (FAS Russia) recognized that the Irkutsk Regional Authority, the Irkutsk Regional Department for Urban Planning and Road Facilities, «Sibirsky Cement» Holding Company» OJSC, the East-Siberian Railway - a branch of «RZhD» OJSC and «ZapSibCement» Ltd. violated Clauses 3 and 4 Artcile 16 of the Federal Law «On Protection of Competition».
The above organizations violated the law because in 2007 the Irkutsk Regional Authority and «Sibirsky Cement» Holding Company» OJSC, which is the largest cement producer in the Siberian Federal District, signed an agreement according to which «Sibirsky Cement» Holding Company» OJSC was obligated to sell outside the Irkutsk region only the cement that was unclaimed by the construction sector within the region.
In September 2007, the executives of the East-Siberian Railway - a branch of «RZhD» OJSC made several orders forbidding cement shipments outside the Irkutsk region, while the Irkutsk Regional Department for Urban Planning and Road Facilities and «ZapSibCement» Ltd. (a business unit of «Sibirsky Cement» Holding Company» OJSC) started implementing a concerted plan for shipping cement to consumers, according to which the cement produced at the Angarsk Cement Plant could not be shipped outside the Irkutsk region..
Therefore, in 2007 the Irkutsk Regional Authority and «Sibirsky Cement» Holding Company» OJSC put in place a competition-restrictive agreement in the Irkutsk region, and the East-Siberian Railway - a branch of «RZhD» OJSC, «ZapSibCement» Ltd. and the Irkutsk Regional Department for Urban Planning and Road Facilities exercised concerted actions, 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 market.
The decision and determination on the case will be issued within the statutory period.
