LUKoil reacts to anti-monopoly fines

MOSCOW, Aug. 31 (UPI) -- Executives at Russian oil giant LUKoil say the federal anti-monopoly watchdog is unfairly targeting the oil industry amid stiff penalties over market abuse.

Leonid Fedun, the vice president at LUKoil, Russia's largest oil company, lashed out at the Federal Anti-Monopoly Service for its fines imposed against its competitors.

The FAS last week announced it has fined Anglo-Russian venture TNK-BP and Gazprom Neft, the oil arm of energy monopoly Gazprom, with a combined total of $283.4 million in penalties for abusing its position on the oil market.

Fedun blamed the FAS probe for contributing to market pressures on the oil sector, saying the watchdog was not targeting other markets as aggressively as the energy sector, The Moscow Times reports.

"The Federal Anti-Monopoly Service doesn't get involved in any other spheres," he complained.

The FAS is reviewing its case against LUKoil following a series of delays the watchdog blames on the energy giant.

Russian Prime Minister Vladimir Putin in July 2008 ordered the FAS to examine LUKoil, Gazprom Neft and its competitors for abusing their position to increase the price of retail gasoline, jet fuel and diesel.

TNK-BP in June won its appeal of a $35 million fine imposed by the FAS.

The watchdog has opened 12 cases charging LUKoil with withholding information regarding the probe.