MOSCOW, March 12 - RAPSI. The Federal Antimonopoly Service will hear on March 19 a case against the Defense Ministry suspected of violating competition law by transferring some of associated companies' bank accounts to VTB Bank, service deputy head Andrei Kashevarov told journalists on Monday.

He said the service would send a letter to the ministry stating that it may be fined up to 500,000 rubles ($17,000) for the offence.

The antimonopoly watchdog opened the case at the Sberbank's request. The service uncovered that in August 2011 several defense companies ordered their subsidiaries to open bank accounts in VTB and close accounts in other banks.

The instructions to open accounts at VTB were issued at the Defense Ministers orders. The watchdog maintains such steps grant unjustified advantages to VTB, limit competition on the banking market and deprive defense companies of the right to choose a bank.

Meanwhile, the Defense Ministry denies the accusations and VTB claims it never heard about such orders.