/INTERFAX-KAZAKHSTAN, Astana, April 4, 05/ - Government agency of Kazakhstan for Economic and Corruption related crimes (financial police) charged two PetroKazakhstan Oil Products (PKOP, Shymkent-based refinery, the daughter of Canadian PetroKazakhstan) officials with antitrust law violations.

The police charged the president Thomas Paul Dvorzhak and the chief financial officer Clift Clayton of PetroKazakhstan Oil Products according to the article 196 section 2 (monopolistic actions and competition limitation) of the Criminal Code of Kazakhstan, the statement released by t he police Monday tells.

"According to tentative investigation results", the statement says, "abovementioned persons, taking advantage of powers, set and maintained monopolistic high prices on oil products, limited the competition by sharing the market and constraining accession to oil products market in respect of other entities".

According to financial police until August 2002 the PKOP marking oil products at domestic market through its 7 regional branches.

At the same time, it was established that two officials avoided price ceilings set by the agency for PKOP by creating a scheme of oil products sale at higher prices with the purpose of constraining of fair competition at oil products market.

The developed scheme, according to the announcement, suggests the adoption by PetroKazakhstan group shareholders of the seven independent LLPs (Petroleum Country, Munai Sauda Oil, karneftekhim, Zhanarmai torg, El Munai, Vostok Munai Ltd, KyzylOrda Munai Services) in Kazakhstan instead of seven regional branches of PKOP.

"Registered LLPs, affiliated with PKOP, were not included in the register of monopolists enabling them to market oil products at prices exceeding those set by the antimonopoly agency, reaping extra benefits from higher profits and transferring it as dividends at the accounts of Canadian companies-founders", the statement says.

"With the purpose of avoidance of acknowledging of LLPs as dominating subjects at oil products market, each LLP was selling oil products in its region on behalf of given licenses and stamps. As a result of such activities the share of sales of each LLPs was artificially lowered ", the statement says.

According to police, "the volume of sales was being artificially maintained at the level not exceeding 35% at corresponding oil products market, thereby evading the regulatory prices".

[2005-04-04]