Antimonopoly agency issued prescriptions to 7 companies about discontinuation of a monopolistic practice and imposed fines

/Kazakhstan today, December 23, 03/ - Antimonopoly agency of the Republic of Kazakhstan in the beginning of December 2003 issued prescriptions to 7 companies on discontinuation of a monopolistic practice and imposed fines for more than KZT15 bn. Oraz Zhandosov, the director of antimonopoly agency, informed about this fact today, on December 23 at press conference in Astana. As O. Zhandosov explained, in the course of joint examination of the Agency of natural monopolies regulation and Agency of financial police it is revealed that, seven competing companies -Zhanarmaitorg LLP, Petroleum Country LLP, Munai Sauda Oil LLP, Kazneftekhim LLP, Vostok Munai Ltd LLP, El Munai LLP and Kzyl Orda Munai Service LLP - undertook collusive actions aimed at maintaining single tariffs and avoiding competition between themselves. O. Zhandosov, therefore stressed that as a result of collusion, price increase of 30 to 60 % was observed at commodities markets. According to agency's estimates, total monopolistic revenues from prohibited activities equaled to KZT13 bn. The director of the agency stressed "there is nothing extraordinary here". Moreover, in his opinion "it is normal, when decision is adopted through justice procedures". However, O. Zhandosov, is not sure in fact that "collusion could be proved in court, because at present time, the law regulating monopolistic activities is still underdeveloped. [2003-12-23]