Photo: gov.kz
The Agency for Protection and Development of Competition in the North Kazakhstan Region has launched an investigation into a branch of Russian Railways (RZD) operating in the country, according to a statement from the agency's press service.
The probe was prompted by a complaint from the Kazakhstani company Agrimer Mamlutka LLP. The company reported a sharp increase in prices for metrological services provided by the Petropavlovsk branch of the South Urals Railway—a subsidiary of RZD. Since January of this year, the cost of the service has risen by 9.5%, reaching 845,261.76 tenge (about $1,500) including VAT. In contrast, the same service in other regions of Kazakhstan costs around 391,000 tenge (approximately $727).
During its review, the competition agency identified signs of a potential violation of antitrust laws—specifically, the setting of a monopolistically high price, which falls under Point 1, Article 174 of Kazakhstan’s Entrepreneurial Code.
The agency’s investigation is expected to take between three and five months.
The Petropavlovsk branch of the South Urals Railway is based in the city of the same name in northern Kazakhstan. It is responsible for both passenger and freight transport, as well as maintenance of railway infrastructure. It is the only subsidiary of Russia’s RZD currently operating in Kazakhstan.
