Bloomberg News

Russian Oil Companies Face Fines on Product Prices After Ruling

May 26, 2010

TNK-BP (TNBP), OAO Lukoil (LKOH), OAO Rosneft and other Russian oil producers may have to pay a combined 25 billion rubles ($800 million) in fines for charging high domestic oil product prices after a court rejected an appeal.

The country’s Higher Court of Arbitration ruled yesterday that TNK-BP would have to pay 1.1 billion rubles in the first appeal of fines levied by the government to reach the court.

“Yesterday was a very important decision that supports the position of the Federal Antimonopoly Service,” Sergei Noskovich, a spokesman for the service, said by e-mail. Combined fines levied in 2008 and 2009 were 25 billion rubles, he said.

The ruling on an individual case doesn’t necessarily set a precedent for other companies, Dmitry Dolgov, a Lukoil spokesman, said by telephone today. Rosneft spokesman Nikolai Manvelov declined to comment. TNK-BP declined to comment.

Oil companies may have to pay a total $1 billion, Russian newspaper Vedomosti reported today, citing Anti-Monopoly Service chief Igor Artemyev.

To contact the reporter on this story: Stephen Bierman in Moscow sbierman1@bloomberg.net.

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net.


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