POST Online Media Lite Edition



 

Antimonopoly watchdog to review case against Russian Railways

Staff Writer |
The Federal Antimononopoly Service (FAS) has launched a case against FGK company and the Russian Railways.

Article continues below






This is over allegedly setting monopoly high prices for providing open-top wagons for transportation of minerals and construction materials on domestic routes.

The case was launched on the grounds of information received by FAS after it had investigated several reports about this matter. Prices for provision of this type of wagons by FGK rose by 38% from January 1 to August 1 this year, as FAS has found out.

According to the Service, FGK is the leader on the open-top wagon transportation market with other competitors looking at the company’s rates when setting prices for their services. FAS noted that price hikes initiated by FGK facilitate other companies to increase their prices as well.

FAS notes that any misuse of the dominant position on the market is a serious violation of antimonopoly legislation and is punishable by fine, amounting 1-15% of the violator’s earnings.


What to read next

Russian Railways may boost cargo shipment discount to 55%
Russia drops competition probe into Mondi's unit
Russian Railways can cut 2017 spending by up to $1 billion