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. Last Updated: 07/27/2016

RZD Fined $88M for Antitrust Offense

The Federal Anti-Monopoly Service ordered Russian Railways to pay a fine of 2.54 billion rubles ($88 million) for violating anti-monopoly law.

The service accused Russian Railways of abusing its dominant market position by refusing to sign an agreement for cargo shipments with a penal colony in the Belgorod region.

The colony, “because it’s a budget-funded institution, shouldn’t have to pay more than 30 percent up front for cargo shipments,” the watchdog said in a statement Tuesday. But Russian Railways has refused to do business with the colony unless it pays completely in advance.

Russian Railways said Tuesday that it is entitled to ask for 100 percent advance payment according to Russian rail transport regulations.

The railway plans to appeal the fine levied by the watchdog as soon as it receives the official documents.