The Russian Competition Authority, the Federal Antimonopoly Service of the Russian Federation (“FAS”), determined that the Russian Railways violated competition law by monopolistic pricing.
Russian Railways, based on Moscow, is the agency that operates Russia's state-owned railway services and is one of the 3 largest railway companies in the world. It was established on 18 September 2003 to replace the Ministry of Railways. Russian Railways manages the infrastructure and operations of freight and passenger train services. FAS analyzed the costs of Russian Railway OJSC that had been taken into account in steam pricing in 2019 and found that the steam generation costs had been overrated significantly contrary to the general market trends and the volume of steam generation.
Based on these conclusions, FAS decided that Russian Railways violated the Federal Law “On Protection of Competition” by monopolistic pricing for heating energy in the form of steam for “Rikwest-Service” Ltd.