Russian authority to investigate pricing complaint against Nizhnekamsk

Moscow – Russian Federal Antimonopoly Service (FAS) has announced that it is investigating synthetic-rubber (SR) pricing activities of Tatarstan-based Nizhnekamskneftekhim PJSC (NKNH).

The case, brought to the agency by NKNH's long-term customer Tatneft –Nefekhimsnab concerns a ‘significant increase’ in SR prices “without objective reasons,” said a 2 July FAS statement.

The companies, it said, signed a supply contract in Nov 2012, while the latest price adjustments were made to the contract in 2015. Under the amended terms, prices were fixed until 31 Dec 2019. 

“Nevertheless, when in April 2018, Tatneft –Nefekhimsnab sent an offer to its partner to prolong the existing contractual relations, Nizhnekamskneftekhim suggested to conclude a new contract,” FAS noted. 

Under the new agreement, it has been claimed, prices for goods supplied would increase by between 10% and 27%.

According to Tatneft-Nefekhimsnab, NKNH refused to sign an additional Agreement based on previously agreed conditions.

The company claimed that Nizhnekamskneftekhim, as “a dominant entity on the rubber supplies market, is attempting to sell its products at higher costs, gain excessive profit and create competitive advantages to itself.”

The move, added Tatneft – Nefekhimsnab, could infringe its interests and those of other entities operating in relevant markets.

Tatarstan’s locals Office of Federal Antimonopoly Service (OFAS) has now opened a case against Nizhnekamskneftekhim “upon signs of violating” competition law, the statement said.

The case is scheduled for hearing on 5 July.