Gazprom Neft could be fined 2%-3% of annual petroleum products turnover for 2008

Gazprom Neft (RTS: SIBN) could be fined 2% to 3% of its annual turnover from the sale of petroleum products in 2008 if the Federal Antimonopoly Service (FAS) rules the company raised prices on such products between the fourth quarter of 2008 and February 2009, FAS chief Igor Artemiev told journalists on Thursday. Artemiev said that if “we learn that a number of the violations have been eliminated at the moment the decision [on fining the company] is made, they can expect a minimum fine of 1% of turnover.” Gazprom Neft said last week that it would voluntarily eliminate the violations if the FAS would indicate “what exactly the violations consist of.” The FAS chief said he did not understand how the company could now eliminate violations allegedly made several months ago given the fact that oil prices have changed course twice since then. Artemiev said earlier on Thursday that the FAS would not exempt Gazprom Neft from fines over alleged price fixing, but the oil major’s offer to remedy violations will be taken into account. At the end of 2008, the FAS fined each of the four big oil companies more than 1 billion rubles for price hikes on oil products in the third quarter of the year. (July 3, 2009)