FAS Initiated Cases Against Raspadsky Ugol & Evraz
OREANDA-NEWS. On July 29, 2008 Federal Antimonopoly Service (FAS Russia) initiated two cases against "Raspadsky Ugol" Ltd. and "Evraz Holding" Ltd. for violating Part 1 Article 10 of the Federal Law "On Protection of Competition", reported the press-centre of FAS Russia.
The cases were initiated because the companies abused dominant position on the market of coking coal. Jointly with "Mechel" OJSC, "Raspadsky Ugol" Ltd. and "Evraz Holding" Ltd have over 50% market share.
"Raspadsky Ugol" Ltd. and "Evraz Holding" Ltd. violated the antimonopoly legislation by fixing and maintaining monopolistically high prices on the domestic market of coking coal, imposing unfavorable conditions upon their counteragents on the domestic market, fixing economically unjustified different prices for consumers on domestic and export markets, as well as creating discriminatory conditions for consumers on domestic market.
Earlier a similar case was initiated against the group of persons of "Mechel" OJSC.
Antimonopoly proceedings have been initiated against all companies involved in coal production (sales in each group of persons ("Raspadsky Ugol" Ltd. and "Evraz Holding" Ltd.), from the coal producer to trading houses, as well as against the parent (managing) company.
The cases against "Raspadsky Ugol" Ltd. and "Evraz Holding" Ltd. were initiated upon FAS Russia's inspections and price monitoring.
Analysis of price behavior on the domestic market of coking coal, carried out by FAS Russia due to increasing prices on this market, showed that prices started raising significantly from the last quarter of 2007.
From September 2007 to March-April 2007-2008, the prices for coking coal distributed by "Raspadsky Ugol" Ltd. and "Evraz Holding" Ltd. in the domestic market gained approximately twofold increase.
FAS Russia will send copies of orders and determinations on initiating proceedings to the companies within the statutory period.
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