Wednesday, January 28, 2009

Evraz To Appeal Against Coal Monopoly Decision Next Week

Reports from Russia suggest that the Evraz Group is challenging a decision by the Russian Federal Antimonopoly Service to fine a number of its coal mining units and force them to lower coking coal prices.

Evraz will appeal the ruling at the Moscow Arbitration Court on February 6th.

Russian Prime Minister Mr Vladimir Putin and the Deputy Prime Minister, Mr Igor Sechin, ordered the FAS to analyse the market for coking coal concentrates. The FAS opened cases against major coking coal producers Mechel, Evraz, Raspadsky Ugol and Sibuglemet for breaking anti-monopoly law, fining the first three companies RUB 789 million (US$23.9 million), RUB 149 million (US$4.5 million) and RUB 117 million (US$3.5 million) respectively.

The companies have paid the fines, lowered their coking coal prices and signed long term coal supply agreements with their main customers.

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