OREANDA-NEWS. On 03 September 2008 was announced, that UC RUSAL, the world’s largest aluminium and alumina producer, has sent a letter to the Russian Federal Antimonopoly Service (FAS) requesting that the FAS take relevant measures to stop LUKOIL violating antimonopoly law and hold the company to account for this breach.

Since April 2008, LUKOIL has significantly decreased the supply of oil coke to UC RUSAL’s largest aluminium smelters in violation of its obligations under existing long-term contracts.  By cutting the volumes of supply without UC RUSAL’s consent, LUKOIL companies are trying to force UC RUSAL to agree to pay higher prices for oil coke. As a result of these actions, UC RUSAL’s aluminium smelters have been undersupplied by about 40,000 tonnes of oil coke between April and June 2008.

The unilateral revision of conditions in existing agreements by LUKOIL, which controls over 35% of oil coke market, is a violation of article 10 of the Federal Law On Protection of Competition. According to this article, actions of an organization controlling a dominant share of a market which result in infringing upon other parties, including forcing a contactor into accepting disadvantageous conditions, are prohibited.

UC RUSAL is therefore asking the FAS to provide state control over the execution of antimonopoly law and issue a binding order to stop LUKOIL’s abuse of its dominant position, fulfill its contractual obligations, hold the LUKOIL companies who cut supply and their officials to account and demand they rectify the consequences of this violation of the law by providing supply based on prices defined in contracts.