ECHONOMICS: Gazpromneft, Rosneft, LUKOIL and Surgutneftegaz under special attention of antimonopoly bodies

The FAS of Russia estimated that Gazpromneft, Rosneft, LUKOIL and Surgutneftegaz jointly control the share of over 70% of the Russian fuel market. Each of those economy subjects occupies over 80%, which is more than all other players of the crude oil market in the country. The figures are given in the report on competition for 2012.

An expert’s commentary:

Arthur Rokhlin, Partner of the Law Firm "YUST"

According to the Competition Protection Law, the publishing of the report means that said companies may be recognized as collectively dominating the market of oil and derivatives.

Consequently, sanctions for abuse of the dominating position may be applied to them, and they are in the zone of special attention and supervision of antimonopoly authorities. Meanwhile, the Competition Protection Law stipulates additional conditions of recognition of organizations as collectively dominating the respective markets. Therefore, the share of 70% does not always mean that those companies are able to decisively influence the conditions of the commodities’ turnover at the market. Thus, even if claims are presented to such organizations, they will be able to prove in court that they are not dominating.

Source: Echonomics, 17.06.2013 (on air – 8:47).