Press-release of 08.07.2010

The Federal Antimonopoly Service (FAS Russia) initiated a case against the group of persons of "EvrazHolding" Ltd., the group of persons of "Rsapadskaya Coal Company" CJSC and the group of persons of "Severstal" OJSC for the signs of abusing market dominance (Article 10 of the Federal Law "On Protection of Competition").

FAS Russia suspects that economic entities violated the law by fixing economically, technologically or otherwise unjustified different contract prices for supply of coking coal concentrates (close-burning grades G (fat coal) and GZh (fat gas coal)) to domestic and foreign consumers.

FAS Russia points out that the difference between contract prices for coking coal concentrates (close-burning grades Zh and GZh) did not depend on the scope of supply and transportation costs.

FAS Russia also suspects that the companies created discriminatory conditions for Russian consumers in comparison with consumers abroad.

The case was initiated upon the findings of the FAS Russia's analysis of the market of coking coal concentrate completed in January - March 2010?.

In accord with the instructions of the Government of the Russian Federation, FAS Russia is analyzing production costs of the main process stages of metallurgical products: from coking coals and iron ore raw materials to the end metal products.

Based on the findings, on 21st May 2010 FAS Russia initiated a case against "EvrazHolding" Ltd. for the signs of abusing dominance on the market of rolled sorted metal (Article 10 of the Federal Law "On Protection of Competition"). The antimonopoly authority continues analyzing the consequences of pricing policy of other metallurgical ("MMK" OJSC,"Severstal" OJSC, "Novolipetsk Steel" OJSC and "Mechel" OJSC)

Reference:
Zh and GZh coal is used as household fuel, power-plant fuel and raw materials for metallurgical and chemical industries. Traditionally, Zh coal is in short supply in Russia.