Raiffeisenbank facing antitrust fines in Russia

MOSCOW Jan 9 (Reuters) - The Russian subsidiary of Raiffeisen International Bank-Holding RIBH.VI could face major fines for violating antitrust laws, Russia's Federal Anti-Monopoly Service said on Wednesday.

ZAO Raiffeisenbank, a top-ten Russian lender, and nine of its insurance partners are being investigated for evidence of limiting competition "possibly by fixing or propping up prices (tariffs)," the service said in a statement.

"If a breach of the law is found, the fine under the legal codex would be from 1 to 15 percent of its income from the sectors in question," Andrei Kashevarov, the deputy head of the watchdog, told Reuters.

Raiffeisenbank officials said they could not immediately comment.

Separate inquiries have been opened into Raiffeisenbank's work in the car and mortgage lending sectors, the watchdog's statement said.

In the mortgage industry, the partners being investigated are insurance firms RK-Garant and Voyenno-Strakhovaya Co.

In auto-lending, the partners being investigated are insurance firms Standart-Reserv, Voyenno-Strakhovaya Co., ROSNO, Sogaz, Yugoriya, Rossiya, Rosgosstrakh and AlfaStrakhovaniye.

In February 2006, Raiffeisenbank Austria bought Russia's Impexbank for $550 million in a deal that made it the largest foreign player in Russia's fast-growing banking sector.

Kashevarov said both inquiries result from this acquisition, as the new entity, ZAO Raiffeisenbank, and its partnerhsips had to be reviewed for anti-trust violations.

"As the acquiring company, (Raiffeisenbank) takes on all of the responsibilities (of Impexbank), including these rather unpleasant ones," he said.

In a similar case last October, Russian insurance firm Avangard Garant was fined 1 percent of its revenues, or around 4 million roubles ($163,700). Kashevarov said it was charged the minimum fine because it did not contest the charges.

"If (Raiffeisen) goes the same road, we would take the same measures. Everything will be consistent," Kashevarov said, adding that a decision would be reached within six months.

(Reporting by Simon Shuster)