FAS: LUKoil, Rosneft manipulated market

MOSCOW, Oct. 31 (UPI) -- The Russian Federal Anti-Monopoly Service found oil majors Rosneft and LUKoil exploited their market positions to keep energy prices high, the service said.

The FAS in July echoed concerns from Russian Prime Minister Vladimir Putin that LUKoil, Gazprom Neft, Rosneft, Surgutneftegaz and TNK-BP inflated the domestic price of fuel resources due to their market dominance.

FAS said Rosneft "fixed and maintained high monopoly-like prices" and LUKoil had "abused its dominant position" for fuels during the summer, RIA Novosti reported. Both firms were found to have kept prices high without economic or technological rationale.

Officials with the anti-monopoly service said high fuel prices maintained by LUKoil created social disorder and market worries.

"The actions by the oil company have given rise to social tension and economic problems in the country," said Pavel Subbotin, deputy chief of FAS.

FAS in September slapped Gazprom and LUKoil with collective fines of more than $730,000 for market manipulation.