Russian anti-monopoly service threatens oil companies with sanctions

Category Oil & Gas
Source RIA Novosti

MOSCOW — Deputy head of the Federal Antimonopoly Service Anatoly Golomolzin said the agency might impose sanctions against oil companies that intended to freeze only the retail gasoline price on the domestic market, leaving the wholesale price to further grow.

"We are planning tough sanctions against those companies," Golomolzin told a news conference Tuesday, adding that freezing retail gasoline prices could be used by big companies against small independent owners of fuel stations.

However, the decision to freeze retail oil prices, made by leading Russian oil companies Monday, did not violate anti-monopoly legislation, since the law stipulates exceptions given their socio-economic effectiveness, the official said.

On Monday, TNK-BP, LUKoil, Sibneft, Surgutneftegas and Tatneft agreed to freeze the retail gasoline price until the end of 2005.

A source at the Economic Development and Trade Ministry said the decision was aimed at settling the domestic market and domestic consumers.

"Oil companies understood this well and were prepared for such a decision," the source said.