Press-release of 05.07.2010

The Office of the Federal Antimonopoly Service in the Omsk region (the Omsk OFAS Russia) received payment documents confirming that "Omskvodocanal" OJSC had paid an 8-million Rubles fine imposed upon the company for violating the antimonopoly law.

On 18th March 2009, the Commission of the Omsk OFAS Russia found that "Omskvodocanal" OJSC violated Part 1 Article 10 of the Federal Law "On Protection of Competition" (which prohibits actions (omissions) of an economic entity that had dominant position on the market if such actions have resulted or can result in preventing, restricting or eliminating competition and (or) infringing the interests of other persons).

"Omskvodocanal" OJSC abused its dominance on the market of water supply and drainage services with the geographic boundaries of Omsk. The company evaded a contract for potable water delivery and waste water and pollutants collection with "MTS Service" Ltd. to provide water supply and drainage services to a residential house at 8, Komkova St., Omsk.

The Commission of the Omsk OFAS Russia issued a determination to "Omskvodocanal" OJSC requesting the company to eliminate the antimonopoly violations by entering into the contracts in accordance with the Rules for use of the systems of public water supply and sewage in the Russian Federation. "Omskvodocanal" OJSC was also fined 8,103,790 Rubles - one hundredth of the income gained by the company from selling its services for cold water supply and drainage to industrial enterprises in 2008.

"Omskvodocanal" OJSC disagreed with the decision of the antimonopoly body and challenged it through courts. However, the Court of the First Instance and the Appeal Court supported the position of the Omsk OFAS Russia.

"Omskvodocanal" OJSC paid the fine in full.