Russia’s largest domestic firm Egorov Puginsky Afanasiev & Partners has negotiated the end to a major Russian antitrust dispute that will result in new legislation to bring Russia into line with European antitrust practices.
The case comes ahead of the implementation of a new federal anti-monopoly law, on which Egorov advised the Russian Federation.
The firm acted for the Eurocement Group, which was accused of breaching competition laws after raising its prices by 70 per cent. The Federal Anti-Monopoly Service fined Eurocement Rub1.92bn (£37.64m), but the company appealed the decision.
The case went through a number of courts before it reached the Federal Arbitrage Court of Cassation in Moscow, which negotiated the settlement between the two parties.
The agreement reached reduces the amount of the fine to just Rub267m (£5.25m). Eurocement has agreed to notify the Anti-Monopoly Service if it increases cement prices by more than 5 per cent per quarter, or if it buys a stake in a rival cement company greater than 15 per cent.
Egorov chairman Dimitry Afanasiev said the agreement will help bring more investment into the cement sector, which in turn will aid the Russian government’s national affordable housing project.