The Russian mining and steel producer Evraz Group is challenging the decision of Russia's Federal Antimonopoly Service (FAS) to fine its coking coal subsidiaries Yuzhkuzbassugol and Raspadskiy Ugol and force them to lower coking coal prices. The case hearing is scheduled for February 6, 2009 and will take place at the Moscow Arbitration Court.
As SteelOrbis previously reported, at the request of Russian Prime Minister Vladimir Putin, in July 2008 the FAS initiated legal proceedings against Evraz's coking coal subsidiaries Yuzhkuzbassugol and Raspadskiy Ugol on the basis of violation of article one of Russian federal antimonopoly law. In its investigations the FAS concluded that these companies had violated Article 10 of the Federal Law "On Protection of Competition" and imposed administrative fines upon Yuzhkuzbassugol and Raspadskiy Ugol of Ruble 149,142,457.6 (approx. $5.91 million) and Ruble 117,245,642.6 (approx. $4.64 million) respectively.
Evraz Group paid the fines, reduced its ex-works prices for coal concentrates, and concluded long-term contracts with the largest consumers for coal concentrate supplies.
In addition, at the end of December Russian Deputy Prime Minister Igor Sechin chaired a meeting which agreed on the expediency of maintaining and further developing long-term contract relations between participants of the market for coal concentrates.