Federal Antimonopoly Service (FAS Russia) has initiated a case of abuse of market dominance against OJSC IPP (part of the Group of companies PJSC Novorossiysk Commercial Sea Port, NCSP) for violating Article 10 of the Law "On Protection of Competition", the FAS press release said. The legal action was initiated by collective appeal to Russian FAS on Dec. 13, 2010, submitted by Trans Oil Service Ltd, ERA Ltd., LLC Transbunker-Novo, LLC Black Sea Towing Company. According to the petitioners, IPP, infringed upon their interests by cancellation of contracts for receiving, storage and shipment of petroleum products.
According to the companies, IPP owns and operates the only liquid bulk terminal at the port of Novorossiysk that enables the entire process of bunkering, including transshipment of oil products through special terminals (receiving petroleum products, storage of the products in onshore oil reservoirs and loading to bunkering vessels).
In January 2009, IPP entered into agreements for receiving, storage and shipment of petroleum products to all business entities that are engaged in bunkering of ships.
During the inquiry, FAS’ experts determined that the actions of OJSC IPP hinder the bunkering companies’ business and “prevent equal access to services of natural monopolies in the transport through the termination of contracts, virtually eliminate competition on the market of bunkering vessels at the port of Novorossiysk”, FAS said.
According to the companies, IPP owns and operates the only liquid bulk terminal at the port of Novorossiysk that enables the entire process of bunkering, including transshipment of oil products through special terminals (receiving petroleum products, storage of the products in onshore oil reservoirs and loading to bunkering vessels).
In January 2009, IPP entered into agreements for receiving, storage and shipment of petroleum products to all business entities that are engaged in bunkering of ships.
During the inquiry, FAS’ experts determined that the actions of OJSC IPP hinder the bunkering companies’ business and “prevent equal access to services of natural monopolies in the transport through the termination of contracts, virtually eliminate competition on the market of bunkering vessels at the port of Novorossiysk”, FAS said.