Friday, June 22, 2018

Court agrees with dismissal of Yekaterinburg Electric Grid Company petition

The Russian Federation's Supreme Arbitration Court agreed with the Federal Antimonopoly Service Russia's decision this week to dismiss a petition from Yekaterinburg Electric Grid Company OJSC.

In 2009, the Yekaterinburg electric company petitioned FAS Russia to possess and use 100 percent of the balance-sheet value of City Network Company, Ltd.'s fixed production assets as part of a lease contract to provide electric power transmission services. FAS denied the petition as it indicated the transaction could limit competition, SKRIN reports.

The Yekaterinburg Electric Grid Company did not agree with the FAS decision and filed a lawsuit. The decision by the antimonopoly body was supported by the Moscow Arbitration Court, the 9th Arbitration Appeal Court and the Federal Arbitration Court of the Moscow District. The Supreme Arbitration Court also supported the reasonableness and legitimacy of the antimonopoly authority's decision.

The Supreme Arbitration Court ruled that by completing the transaction, the state of competition in the energy saving market in Yekaterinburg could be adversely affected, SKRIN reports.

If the transaction were to go through, Yekaterinburg Electric Grid Company, a seller and transmitter of electric power, would be able to prevent consumers of City Network Company, Ltd., to get their energy from another power supply other than Yekaterinburgenergosbyt, Ltd. The transaction allow the company to unilaterally affect the circulation of goods on the market.