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DECISION OF THE SUPREME COURT OF THE RUSSIAN FEDERATION

of December 26, 2000 No. GKPI00-1116

Item 2 of the order of the Government of the Russian Federation of December 28, 1998 "About enhancement of state regulation of the prices (rates) for communication services" is nullified No. 1559 and not generating consequence in law from the date of its edition

The Supreme Court of the Russian Federation in structure:

the chairman - the judge of the Supreme Court of the Russian Federation Romanenkov N. S.

in case of Nosovskaya E. V. secretary.

with participation of the prosecutor Masalova L. F.

having considered in proceeding in open court civil case according to Markelov Alexander Ilyich, Donchenko Valery Kirillovich, Platonov Alexander Aleksandrovich's claim, Svetlichnoye of Alexey Ivanovich about recognition by invalid: N265 "On Regulation of Rates for Communication Services and about Approval of Basic Provisions of State Regulation of Rates for Services of Public Electric Communication at the Federal and Regional Levels" and orders of the Government of the Russian Federation of December 28, 1998 N1559 "About Enhancement of State Regulation of the Prices (Rates) for Communication Services" established orders of the Government of the Russian Federation of March 7, 1997:

Markelov A. I., Donchenko V. K., Platonov A. A., Svetlichny A. I. appealed to the Supreme Court of the Russian Federation with the claim about recognition by invalid: orders of the Government of the Russian Federation of March 7, 1997 of N265 "On Regulation of Rates for Communication Services and about Approval of Basic Provisions of State Regulation of Rates for Services of Public Electric Communication at the Federal and Regional Levels" and orders of the Government of the Russian Federation of December 28, 1998 of N1559 "About Enhancement of State Regulation of the Prices (Rates) for Communication Services" since they contradict the current legislation and violate the rights and legitimate interests of consumers.

Applicants Markelov A. I., Donchenko V. K., Platonov A. A., Svetlichny A. I. on day of hearing of the case are informed, in court were not, asked to consider case in their absence.

Representatives of the interested person of the Government of the Russian Federation of Chertilin N. L., Bazina O. N., Kashentseva L.L., Kalmykov E. V. objected to satisfaction of the declared requirements since the disputed acts are adopted in pursuance of the Federal Law "About Natural Monopolies" and are directed to consumer protection. As for Item 2 of the order of the Government of the Russian Federation of December 28, 1998 N 1559, that this regulation has no mechanism of realization and now is not applied.

Having listened to explanations of representatives of the interested person of the Government of the Russian Federation of Chertilina N. L., Bazina O. N., Kashentsevoy L.L., Kalmykova E. V., having researched case papers and having heard the conclusion of the prosecutor of the Prosecutor General's Office of the Russian Federation Masalova L. F., believing that the claim is subject to satisfaction partially, the Supreme Court of the Russian Federation finds that Markelov A. I. claim., Donchenko V. K., Platonova A. A., Svetlichnoye A.I. is subject to satisfaction partially.

According to Art. 13 of the Civil Code of the Russian Federation the substandard act of state body or local government body, and in the cases provided by the law, also the regulation, the civil laws and interests of the citizen or legal entity protected by the law which are not corresponding to the law or other legal acts and violating, can be recognized as court invalid.

The Federal constitutional Law "About the Government of the Russian Federation" provides that the Government of the Russian Federation within the powers performs regulation in the social and economic sphere.

According to the Federal Law "About Natural Monopolies" the Government of the Russian Federation accepted on March 7, 1997 the resolution N265 in edition of the resolution of 28.12.98 N 1559, which approves Basic provisions of state regulation of rates for services of public electric communication at the federal and regional levels.

Claim arguments that basic provisions of state regulation of rates for services of public electric communication at the federal and regional levels contradict Art. 8 of the Federal Law "About the competition and restriction of monopolistic activities on to basic provisions of the Law of the Russian Federation "About Consumer Protection", to Articles 421-426 of the Civil Code of the Russian Federation, Rules of rendering services of telephone communication, are insolvent.

The disputed regulation is published in the field of state regulation of the relations of natural monopolies in the Russian Federation and directed to achievement of balance of consumer interests and subjects of natural monopolies.

So, the representative of the Government of the Russian Federation Bazina O. N. explained in court that it is provided by item 12 of Basic provisions that the minimum level of rates for communication services for the population, except services of rural telephone communication, shall compensate completely costs of the organizations of communication for their provision.

Services of rural telephone communication are subsidized.

Need of reducing cross subsidizing of consumer communication services is stipulated in Item 15 Basic provisions.

In case of the approach of inflation and other conditions specified in Item 23 of basic provisions of the organization of communication have the right to address to regulating authorities with the offer on review of rates for regulated communication services.

Basic provisions of state regulation of rates for services of public electric communication at the federal and regional levels are developed according to the Federal Law "About Natural Monopolies" and other legal acts therefore references of applicants to the regulations of the civil legislation governing contractual relations are illegal.

Tariff regulation of services of natural monopolies in the field of communication the right does not limit open entry of the citizen to the conclusion of the public agreement.

The government of the Russian Federation issues on December 28, 1998 the resolution N 1559, by Item 1 of which the List of communication services, state regulation of the prices (rates) on which in the domestic market of the Russian Federation performs the Ministry of the Russian Federation of the antimonopoly policy and support of entrepreneurship (in edition of the order of the Government of the Russian Federation of September 9, 2000 N 446) is approved.

According to Item 7 of the List of communication services service is local telephone connection, the payment for which includes:

a) in case of subscriber payment system of services of telephone communication (subscription payment for use of the subscriber device):

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