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Court rejected Lukoil request to review justice decision about its abusing market power position

Russia's highest commercial court rejected OAO Lukoil's request to review lower-court rulings that the oil giant abused its market power in pricing refined-oil products.

Court rejected Lukoil request to review justice decision about its abusing market power position

Russia's highest commercial court rejected OAO Lukoil's request to review lower-court rulings that the oil giant abused its market power in pricing refined-oil products, business daily Vedomosti reports Friday. But the Supreme Arbitration Court on Thursday did decide to submit to its presidium, or judicial review panel, a similar case against TNK-BP, the Russia joint venture involving U.K.-based BP PLC. The court's actions also have implications for two state-controlled oil producers, OAO Rosneft and OAO Gazprom Neft, both of which the FAS accuses of price-fixing. The agency says it has the right to seek payment of RUB26.1 billion ($892.2 million) in total fines against the four companies.

In November, non-state producer Lukoil was fined RUB6.5 billion ($225 million) for allegedly restricting supplies and artificially raising prices of gasoline, diesel, and jet fuel during the first half of 2009. TNK-BP, Rosneft and Gazprom Neft were also accused by the FAS of collusion in setting prices during that period. Lukoil and Rosneft were fined a total of RUB1 billion by the agency in 2008, but they managed to get lower courts to reduce the penalties. The FAS maintains the authority to fine violating companies from 1% to 15% of their sales.

TNK-BP, which is fighting a RUB1.1 billion fine, was cleared of wrongdoing in October when it appealed the FAS allegations to three courts in the joint venture's home turf of western Siberia. But Thursday, the arbitration court in Moscow said it will review those decisions because the courts hadn't properly addressed the anti-monopoly agency's arguments.


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