MOSCOW – Russia is considering a bill that would stop oil companies from acquiring gas station monopolies, the Moscow Times reports. The Federal Anti-Monopoly Service wants to keep gasoline station ownership by one entity under 35 percent of the market.
Currently in Russia, retail sales of oil products are nearly split in half between oil companies and independent gasoline station owners. “It’s an alarm bell, since not long ago, independent sellers had 65 percent of the market,” said Anatoly Golomolzin, a deputy head of the anti-monopoly service.
The Federal Anti-Monopoly Service’s bill — with the working title, “on the sale of oil products” — would like to see shares of vertically integrated companies in the regions to be regulated. Any company crossing the 35 percent ceiling would be stopped from purchasing or constructing new gasoline stations in that area, said Golomolzin.
In 54 regions across the country, already a dominating company has a foothold. However, the service would not require companies to sell their gasoline stations but would instead ask that the businesses exchange retail possessions with competitors with controlling assets in other regions.
Golomolzin said that the expansion prohibitions would ensure other companies would be able to expand faster in those regions. Previously, the Federal Anti-Monopoly Service has employed the 35 percent limit to stop gasoline station deals. For example, three years ago, the service did not let a LUKoil firm purchase nearly 20 gasoline stations in the Volgograd area to bolster the 41 already owned.