Gazporm Neft faces fines for alleged price fixing

Gazprom Neft could be fined 2 to 3% of its annual turnover from the sale of petroleum products in 2008 if Russia’s Federal Antimonopoly Service (FAS) rules the company guilty of price fixing. Gazprom Neft had allegedly raised prices of petroleum products between the fourth quarter of 2008 and February 2009. According to FAS chief Igor Artemiev, if the agency learned that a number of the violations were rectified at the moment the decision to fine the company was made, Gazprom Neft can expect a minimum fine of 1% of its total turnover for the period. The refiner had said it would voluntarily address the violations if FAS would indicate specifically what the violations were. The FAS chief said he did not understand how the company could eliminate violations allegedly made several months ago given the fact that oil prices have changed twice since then. The FAS would not exempt Gazprom Neft from fines over alleged price fixing, Artemiev said, but the oil major’s offer to remedy violations will be taken into account. (July 3, 2009)