Russia's Federal Antimonopoly Service has opened an investigation into a Siberian subsidiary of Russia's top dairy producer Wimm-Bill-Dann, after the firm raised its wholesale prices by 11-17.9 percent while its production costs grew by just 4.5 percent.
The service said in a statement that it saw no economic reasons for the price rise and accused the company of abusing its dominant position on the market.
"Weekly food price monitoring says the raw milk purchasing price for Wimm-Bill-Dann's subsidiary in Novosibirsk has not changed significantly and amounts to an average of 11-12 rubles per litre. The wholesale price for pasteurized milk with a 2.5 percent fat status increased to 26.4 rubles from 20 rubles," the service said.
A hearing on the case is scheduled for September 21.
"If the (Antimonopoly Service's) commission confirms violations, administrative proceedings will be instituted against the offender. Large turnover fines exist," the service said.
The Federal Antimonopoly Service found in August that a Wimm-Bill-Dann subsidiary in Russia's Far East increased its dairy product prices by an average four percent and demanded an explanation. The service said that if Wimm-Bill-Dann did not produce a reasonable answer, it would make checks.
The service also said statement it had found a considerable bread price growth in stores belonging to Holiday, Siberia's top grocery chain in Siberia. The service has sent a report to the regional prosecutor general's office for appropriate action.
NOVOSIBIRSK, Russia, September 3 (RIA Novosti)
