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Russia: Chelyabinsk Milk Processors Suspected of Antimonopoly Law Violations

Source: FLEXNEWS
22/06/2009

19 June 2009 - The Chelyabinsk Office of the Federal Antimonopoly Service (OFAS) has initiated a case against milk processing enterprises in the Chelyabinsk region.

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The companies are Chelyabinsk City Milk Integrated Works OJSC, Magnitogorsk Milk Integrated Works OJSC, Chebarkulsk Milk Plant OJSC, as well as Yuzhnouralsk Milk Plant OJSC, Kopeisk Milk Plant OJSC, Molochny Standard Integrated Works OJSC, Uisk Cheese-Making Plant Ltd., Russky Molochny Product Ltd., Satkinsk City Milk Plant CJSC and Camella Molochnie Prodycty OJSC.

The OFAS claims that these companies are suspected of violating Part 1 Article 11 (prohibiting competition-restrictive concerted actions) and Part 1 Article 10 of the Federal Law 'On Protection of Competition' (which prohibits abuse of dominant position).

"The Chelyabinsk OFAS Russia sees elements of antimonopoly violations in the companies simultaneously reducing purchasing prices for raw materials on average by 4 Rubles (around 25 %), while milk prices in retail chains remain the same", said OFAS.

OFAS Chelyabinsk is investigating the situation in the local raw milk processing market in order to prevent and suppress violations of the antimonopoly legislation of the Russian Federation.

The case will be heard on Friday this week, said OFAS.



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