The Effects of Antimonopoly Policy on Oil Products Markets in Russia

Abstract

The article estimates enforcement activities effects of the Federal Antimonopoly Service in oil products markets. The article analyzes the impact on petrol and diesel fuel markets of two types FAS Russia measures: measures related to the primary detection of antitrust laws violation signs, and measures applied when the violation fact has already been reliably established. The research point is based on the concerns about the negative impact on the companies of posting news of showing interest on the part of antimonopoly authorities with no evidence proving true law violation at the period of publication. To estimate effects on shares prices of large vertically integrated companies in the oil industry we used the event study method. The analysis sample included events that occurred with Russian oil companies from 2013 to 2019. The analysis showed that the effects based on the influence of detection signs of violation and establishing the violation fact of antitrust laws differ both in their intensity and in the direction of influence. It is also proved that the actions of antimonopoly authorities don’t create significant indirect costs of reducing the company's market value.