The Russian Federal Antimonopoly Service (FAS) has organized a working group for devising techniques for calculating coefficients of technological value for coking coals and their concentrates produced in Russia, which will then be used for calculating prices for long-term contracts.
Participating in the working group are representatives of the large Russian coking coal and steel companies such as Raspadskaya Coal Company, Sibuglemet, SDS-Ugol, Altai-Koks, Belon, Mechel, Evraz, Metalloinvest, NLMK, and Severstal.
In addition, FAS has proposed to the Russian coal and steel companies to change the terms of long-term contracts. In August 2008, at the end of the investigation against Raspadskaya and Mechel, when the coal price stood at $280/mt, FAS recommended these companies to conclude minimum three-year supply contracts with steel producers. In September 2008, Mechel concluded a five-year supply contract with MMK, effective from April 1, 2009. However, the average coal price stipulated in the contract is much higher than the current level. Long-term contracts were also concluded by Evraz Group and Severstal.