Russia probes coal producers

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Jul 2008

Russia's Federal Antimonopoly Service on Wednesday announced it has opened an investigation into the pricing practices of two more mining companies as politicians struggle to keep a lid on soaring steel costs. Just days after Prime Minister Vladimir Putin's searing attack on Mechel, the country's largest coking coal producer, for alleged price-fixing and tax evasion, the antitrust authorities added Evraz Holding, which is partly owned by Roman Abramovich, and its affiliate Raspadskaya Coal to the companies being investigated.
The authorities said they were investigating suspicions that the two firms had abused their dominant market position to charge steelmakers steeper prices for coking coal. Coking coal is one of the main materials used in the production of steel.
Coking coal prices doubled between September 2007 and April of this year, said the regulator in a statement. It added that Mechel, Evraz and Raspadskaya together control 50 percent of the market.
Government and business leaders have keenly debated the issue of rising steel prices in recent months, and analysts said it appeared the steelmaking lobby had won out over the coal producers.

Source: Herald Tribune