Antimonopoly activists are at war with the United Trading Company

chemistry
Yesterday, the head of the Federal Antimonopoly Service (FAS) Igor Artemyev signed a lawsuit in the Moscow Arbitration Court for the liquidation of the United Trading Company (UTK). The ETC states that they did not violate antimonopoly laws and intend to prove their case in court.
Let us recall that the dispute between the predecessor of the FAS, the Ministry of Antimonopoly Policy (MAP), and the ETK arose at the beginning of this year (see Kommersant on February 13 and 19). On February 11, MAP accused nine manufacturers of caustic soda and PVC (Volgograd plants Kaustik, Plastkard and Khimprom, Sterlitamak Kaustik, Novomoskovsk Azot, SIBUR-Neftekhim, Sayanskhimplast, Usolyekhimprom and Kirovo -Chepetsky Chemical Plant), as well as ETK as their single sales intermediary in concluding a cartel agreement, which entailed a significant increase in prices for caustic soda. The growth, according to MAP estimates, was 100%. The ministry ordered soda producers to terminate contracts with ETC and enter into them directly with consumers. In addition, MAP promised to file a claim in the arbitration court for the liquidation of the UTC, and also to contact the Prosecutor General’s Office with a request to initiate a case under Art. 178 of the Criminal Code of the Russian Federation (monopolistic activities aimed at limiting competition). The materials were transferred to the Prosecutor General's Office from MAP back in February by former Minister of Antimonopoly Policy Ilya Yuzhanov.
Yesterday, Mr. Artemyev confirmed the continuity of his department by signing a claim to arbitration for the liquidation of the ETK. “MAP (and the ministry is still just being reorganized into the FAS) has such powers. We believe that the company has grossly violated competition law, and there is no sign that it is trying to rectify the situation, so we are forced to file a lawsuit to liquidate it ", Teimuraz Kharitonashvili, head of the competition policy department of the MAPA, explained to Kommersant yesterday.
Meanwhile, the ETC in February appealed the MAP order in court, accusing the agency itself of violating antimonopoly legislation. As a result, the order was suspended, but only as regards the plaintiff, that is, ETC, and not the caustic soda producers. For the latter, for failure to comply with the order, the MAP imposed a fine on the maximum scale - 5 thousand minimum wages for each, that is, 500 thousand rubles. Now, according to Mr. Kharitonashvili, many caustic soda producers are challenging these fines in court, and some have begun to “correct the situation.” “The Kirovo-Chepetsk plant sent documents from which it follows that they will not interfere with the conclusion of direct contracts with consumers of caustic soda. SIBUR-Neftekhim also reported that they have no intention of violating the regulations of the Ministry of Aviation Industry. Khimprom sent a letter, that they were unable to fulfill the order due to a change in management, but in the near future they intend to enter into direct contracts with consumers,” Mr. Kharitonashvili emphasized. Moreover, he said that MAP is considering the possibility of initiating cases of violation of competition law against ETC and in relation to the chlorine and rubber market.
However, the ETC did not change their opinion. “We don’t know anything about the claim yet, but I think we will be notified formally. As for the essence of the matter, we do not consider ourselves either monopolists or violators of antitrust laws: we buy caustic soda on market conditions, and our markup does not exceed 10%,” ETK General Director Konstantin Selivanov told Kommersant yesterday. According to him, prices for caustic soda have indeed increased, but this happened for objective reasons: firstly, prices for gas, or rather its derivatives - ethylene and electricity, necessary for the production of caustic soda, have increased significantly, and secondly, many manufacturers used to trade caustic at a loss, that is, below cost. “And the price of the issue for consumers ranges from 1 to 5% - this is precisely the share of the cost of caustic in the cost of production of our consumers: the pulp and paper industry, the energy industry, the automotive industry,” explained Mr. Selivanov. In addition, according to him, none of the soda producers who entered into agreements with ETK refused them.
The Moscow Arbitration Court scheduled the consideration of the ETC's claim against MAP for April 13.
Kommersant will monitor developments.
ALENA Kommersant-Kornysheva

Newspaper "Kommersant" No. 61 dated 04/06/2004, p. 15

Igor Artemyev sprinkled soda on his head