X5 Retail Group to contest FAS’s fines
UrBC, Yekaterinburg, November 18, 2010. X5 Retail Group announced they were going to contest the fines imposed on the company by Sverdlovsk Region division of Russia’s Federal Antimonopoly Service.
‘The company, which comprises such supermarket chains as Pyaterochka, Perekrestok, and Carousel, is made up of independent legal entities that deal in retail trade as separate operators. On August 1, 2010, ZAO Perekrestok Trade House started running Pyaterochka chain instead of OOO Ural Retail. The FAS’s Sverdlovsk Region division was informed of the changes during their inspection of Pyaterochka. OOO Ural Retail currently includes a logistics distribution center, but the FAS never asked for any information on the center during their check of the food chain. This means OOO Ural Retail did not provide the authorities with any falsified data regarding Pyaterochka. Therefore X5 Retail Group intends to contest the FAS’s decision to impose a 300,000-ruble fine on the company,’ the Group’s representative Natalya Alayuusheva explained to UrBC.
Now the Service’s regional division found OOO Ural Retail guilty of an administrative offense in accordance with Article 19.8 (part 5) of the Russian Federation Administrative Offense Code.
The company was faced with the charges after an inspection of Pyaterochka by the FAS authorities aimed at checking the supermarket chain’s compliance with the existing trade legislation.
The offense allegedly consisted in OOO Ural Retail providing the FAS with admittedly inaccurate data. Namely, it was not made clear to the Service that Х5 Retail Group placed ZAO Perekrestok Trade House, rather than OOO Ural Retail, in charge of Pyaterochka chain stores in Yekaterinburg and Sverdlovsk Region. This meant that starting August 1, 2010, Pyaterochka stores in Sverdlovsk Region were to be controlled by ZAO Perekrestok Trade House and OOO Ural Retail.
The inaccuracy of the data was confirmed through the supplier agreements obtained in the course of the inspection.
Sverdlovsk Region division of Russia’s Federal Antimonopoly Service made OOO Ural Retail face administrative liability for falsifying its reports and imposed a 300,000-ruble fine on the company.
‘The company, which comprises such supermarket chains as Pyaterochka, Perekrestok, and Carousel, is made up of independent legal entities that deal in retail trade as separate operators. On August 1, 2010, ZAO Perekrestok Trade House started running Pyaterochka chain instead of OOO Ural Retail. The FAS’s Sverdlovsk Region division was informed of the changes during their inspection of Pyaterochka. OOO Ural Retail currently includes a logistics distribution center, but the FAS never asked for any information on the center during their check of the food chain. This means OOO Ural Retail did not provide the authorities with any falsified data regarding Pyaterochka. Therefore X5 Retail Group intends to contest the FAS’s decision to impose a 300,000-ruble fine on the company,’ the Group’s representative Natalya Alayuusheva explained to UrBC.
Now the Service’s regional division found OOO Ural Retail guilty of an administrative offense in accordance with Article 19.8 (part 5) of the Russian Federation Administrative Offense Code.
The company was faced with the charges after an inspection of Pyaterochka by the FAS authorities aimed at checking the supermarket chain’s compliance with the existing trade legislation.
The offense allegedly consisted in OOO Ural Retail providing the FAS with admittedly inaccurate data. Namely, it was not made clear to the Service that Х5 Retail Group placed ZAO Perekrestok Trade House, rather than OOO Ural Retail, in charge of Pyaterochka chain stores in Yekaterinburg and Sverdlovsk Region. This meant that starting August 1, 2010, Pyaterochka stores in Sverdlovsk Region were to be controlled by ZAO Perekrestok Trade House and OOO Ural Retail.
The inaccuracy of the data was confirmed through the supplier agreements obtained in the course of the inspection.
Sverdlovsk Region division of Russia’s Federal Antimonopoly Service made OOO Ural Retail face administrative liability for falsifying its reports and imposed a 300,000-ruble fine on the company.
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