Press-release of 22.06.2010

On 18th June 2010, the Arbitration Court of the Republic of Khakassia dismissed the claim of "Sochi-AVIA-Invest" CJSC and pronounced legitimacy of the decision and determination made by the Khakassia Office of the Federal Antimonopoly Service (OFAS Russia).

On 29th January 2010, the Khakassia OFAS Russia found that "Sochi-AVIA-Invest" CJSC violated Clause 1 Part 1 Article 10 of the Federal Law "On Protection of Competition" by fixing and maintaining monopolistically high prices for services of providing aviation fuel and lubrication materials to aircrafts in Abakan airport.

The case was initiated upon a petition of "Vladivostok-Avia" OJSC that "Sochi-AVIA-Invest" CJSC fixed a monopolistically high price for the service of providing aviation fuel and lubrication materials to aircrafts in Abakan airport at 5675 Rubles, which exceeded the sum of costs and profit necessary to render this service.

In course of the investigation, the Commission of the Khakassia OFAS Russia was supplied documents and materials corroborating the fact of the violation (the price should not have exceeded 4,473.84 Rubles per ton of aviation fuel and lubrication materials). Therefore, "Sochi-AVIA-Invest" CJSC restricted competition and infringed the interests of other persons, including "Vladivostok-Avia" OJSC. The Commission issued a determination to set and apply economically justified rates for the services of providing aviation fuel and lubrication materials to aircrafts in Abakan airport, and to transfer the income obtained as a result of violating the antimonopoly law (7.5 million Rubes) to the federal budget.

"Sochi-AVIA-Invest" CJSC disagreed with the decision of the Khakassia OFAS Russia and filed a lawsuit.

The Arbitration Court of the Republic of Khakassia confirmed legitimacy of the decision and determination made by the Khakassia OFAS Russia on "Sochi-AVIA-Invest" CJSC abusing market dominance.