The Federal Antimonopoly Service of the Russian Federation (FAS) has requested the Russian steelmaker Novolipetsk Steel (NLMK) to agree beforehand with the agency any actions directed at previously unplanned reductions in its cold rolled and coated steel production capacities, and also to fulfill all of its supply agreements and deals.
In addition, the FAS has obliged NLMK to conclude its sales agreements on equal terms both with consumers belonging to NLMK Group and with general consumers.
Moreover, from now on, once in a half-year period, NLMK has to provide the FAS with information regarding its cold rolled, hot rolled and coated steel production, domestic supplies and exports, and also provide information about its customers and its sale prices.
This FAS decision is considered to be the first in a series of such measures regarding the compliance of several Russian steel producers with the country's antimonopoly law.
The investigation by the FAS into the issue was initiated in April upon the petition filed by Russian gas and oil producers, Gazprom Neft' and Surgutneft'gaz, and also by the Russian Pipe Industry Development Fund (FRTP).