According to the latest news from the European Plastic industry, 7 different Russian PVC suppliers and producers have violated Russian competion law. The notification was issued by Russia’s Federal Antimonopoly Service (FAS) has ruled that seven Russian PVC producers and suppliers violated competition law by concluding a cartel agreement to share out PVC production and sales in the national market.
The incidence is gaining huge condemnation from all across the industry as it would malign the reputation of the industry as a whole. Russia’s Federal Antimonopoly Service (FAS) has ruled that seven Russian PVC producers and suppliers violated competition law by concluding a cartel agreement to share out PVC production and sales in the national market.
While addressing the crowd composed of industry experts and professions the head of FAS’s anti-cartel section Alexander Kinyov said that, in view of the income gained by the cartel members, the case will be passed to Russia’s Interior Ministry for criminal prosecution.
Companies that are being charged includes:PVC producers Sayanskhimplast based in Sayansk,Irkutsk region; Kaustik (Sterlitamak) of the semi-autonomous Bashkortostan Republic and its Moscow-based parent group Bashkhim; Siberian Chemical Company; Kaustik (Volgograd) and its Moscow-based parent Nikochem group and supplier United Trading Company (JSC ETK).
FAS, which began its investigation last year, found that the firms set up the anticompetitive cartel back in 2005. They agreed to divide up the Russian suspension PVC market by categories of buyers, exchanging information and documents on the scope of production, sales and their customer databases. The Russian antitrust authority has also been conducting investigations into suspected cartel agreements in the country’s soft cable compounds, caustic soda, chlorine and chlorinated paraffin wax markets.
However we wll have to look at out as what decision does it brings in to the overall competition law of Russia and everybody is expecting some stringent and tough antimonopoly standartds should be put in place so as to avoid happenings of any such practices. In a statement, the head of FAS’s anti-cartel section Alexander Kinyov said that, in view of the income gained by the cartel members, the case will be passed to Russia’s Interior Ministry for criminal prosecution. Whatsoever may be the case it has bring a deterrent antimonopoly law which will decide what will be the fate of the company in next few years. Whatsoever may be the case it will give a deterrent to our anti monopoly law.
