Canadian oil firm PetroKazakhstan has lost a legal battle over charges it breached Kazakh anti-monopoly laws and faces a fine of around $1 million, the Kazakh competition agency said yesterday. Kazakh authorities had sought to slap a fine of around $6.6 million on the company, which owns the biggest oil refinery in the country, after accusing it of abusing its market position.

PetroKazakhstan launched a legal challenge against the ruling, but while a court in the capital Astana slashed the fine, it confirmed the company had acted unlawfully. The court reduced the fine from 947 million tenge imposed by the competition agency in October to 149.3 million tenge, or around $1 million. The agency said the court had taken into account only charges relating to the period after August 6, 2002, but that officials reserved the right to impose additional sanctions for offences the company may have committed before that date. "At the present moment we are receiving legal advice on further action regarding this case, including the possibility of appealing the court's decision," the agency said in statement. Company officials could not be reached for comment at its Almaty office.