Press-release of 02.07.2010

The Office the Federal Antimonopoly Service in the Belgorod region (the Belgorod OFAS Russia) found that "R-Pharm" CJSC and "ILANT" Ltd. violated Clause 2 Part 1 Article 11 of the Federal Law "On Protection of Competition" (bid-rigging collusion).

Earlier the Belgorod OFAS Russia initiated a case against "R-Pharm" CJSC and "ILANT" Ltd. for the signs of violating Article 11 of the Federal Law "On Protection of Competition". At the open auction for the right to enter into a government contract with the Belgorod Regional Department of Health Care and Social Security for supply of medicines to some groups of patients in the first six months of 2010 (15 lots), the companies maintained the contract prices for some lots of the open auction at the previously agreed level (98.5% of the original price).

Clause 2 Part 1 Article 11 of the Federal Law "On Protection of Competition" prohibits agreements between economic entities or concerted actions o economic entities on the goods market I such actions have resulted or can result in increasing, decreasing or maintaining tender or auction prices.

Having investigated the case, the Commission of the Belgorod OFAS Russia issued a determination to "R-Pharm" CJSC and "ILANT" Ltd. to stop competition-restricting actions and exercise actions aimed at developing competition.