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Federal Arbitration in Russia Seeks to Limit Airport Prices

Wednesday, June, 22, 2011

Fuel Prices in Vladivostok cue Federal Arbitration Hearing


Federal arbitration looks likely as Russia takes issue with airport policies on the nation's far eastern border.  The Vladivostok International Airport is alleged to have ignored Russian federal laws regarding fair and competitive practices that govern the pricing of airline fuel at the facility.  The Federal Arbitration Court of the Far Eastern District, a Russian governmental body, will hear the case.


Federal Arbitration Concerns Over Ticket Prices


Vladivostok International Airport has allegedly been in violation of Article 10 of Clause 1, Part 1 of the Russian Federal law known as "On Protection of Competition" with regard to its pricing of both airline lubricants and fuels.  Since the cost of these items is a large part of ticket prices for passengers, the airport's policies are regarded as disadvantageous to air travelers. 


Vladivostok's policies have reportedly exceeded allowed price levels known as "fair" price by almost 20%.  A binding order has been issued by a court in this case, instructing the airport to sell fuels and lubricants at a rate of no more than 1294 rubles according to a set formula.  The price that concerned regulators had at times been almost 1550 rubles, far in excess of the price levels deemed fair in governing legislation.  To address concerns over fuel policies and pollution issues here in the United States, parties would be advised to seek a forum for energy arbitration.


Learn more about Federal Arbitration or find an Arbitration Attorney in the National Arbitration Directory.