05
Wed, Aug
52 New Articles

Ivanyan & Partners Represents Union of Railway Transport Operators and Transoil in Russian Antitrust Proceedings

Ivanyan & Partners Represents Union of Railway Transport Operators and Transoil in Russian Antitrust Proceedings

Russia
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

Ivanyan & Partners has represented the interests of the Russian Union of Railway Transport Operators and oil products transporter Transoil in antitrust proceedings against railway wheel manufacturer Vyksa Steel Works. 

According to Ivanyan & Partners, “the subject matter of the comprehensive investigation by the Federal Antimonopoly Service of Russia was the supplier’s activities in 2019, when, during unmet demand on the market, VSW sold solid-rolled wheels via competitive tendering. As a result, the price for wheels increased by over 40% for some customers by August 2019.”

“VSW’s actions caused a shock in the market,” explained Ivanyan & Partners Counsel Ekaterina Smirnova, who led the firm's team on the deal. “Firstly, none of the players knew the volume of goods to be put up for competitive tenders and could not project their economic activity. Secondly, it was proposed that all buyers purchase wheels namely via the bidding procedure and not on the basis of [executed] supply contracts, which provoked additional speculative demand. Thirdly, the starting price at the auction was monopolistically high. What is more, in the eight days between the closing of the first auction and the beginning of the second one, VSW raised the price by another 25%, which had no production or economic grounds.”

Following the proceedings, which concluded on July 8, 2020, the FAS found Vyksa Steel Works guilty of price gouging in the market for solid-rolled wheels.

Russian Knowledge Partner

Founded in 1993, Egorov Puginsky Afanasiev & Partners is the leading full-service law firm in the CIS with offices in Russia, Ukraine and Belarus and associated offices in the UK, the USA and Cyprus.

We advise its clients in many areas of law, including: dispute resolution in Russia and abroad, corporate law, M&A, antitrust issues, project finance and PPP, restructurings and insolvencies, energy and natural resources, property management and privatization, environment, technical regulation and industrial safety, banking and finance, intellectual property, criminal law, real estate and construction, taxation, family and labour disputes, marine and transport law, and international trade and customs.

We combine high academic qualifications, internationally acknowledged moral and ethical values, senior partners' professional experience and practical abilities with the vigour and knowledge of younger attorneys that enables thus providing clients with reliable, first-class service according to both Russian and western standards through a flexible structure.

All News about, and Legal Analysis by, Egorov Puginsky Afanasiev & Partners can be found here.

Firm's website: www.epam.ru

 

Our Latest Issue